by: Chris Strudwick
Any one who has already embarked into the share market would already have an idea what Forex is.
So what Is Forex?
FOREX stands for the extremely popular Foreign Exchange Market.
Essentially simply put the Foreign Exchange Market is where people
trade currencies. Traders buy and sell these currencies and hopefully
try to make a profit while doing so..
The Foreign Exchange Market and the trading as we know it today
started way back in the 1970’s.The foreign exchange market can now be
found wherever there is a financial centre where people trade in the
buying and selling of various securities..
Why Are People Trading in the Foreign Exchange Market.?
Increasingly people are turning into forex trading now than ever
before. The major attractions are that there are no hard-and-fast
requirements to join the market. Anyone can enter it and learn how to
trade. Some even study in advance to be prepared for the big trading
that lies ahead.
Another attraction about forex is the absence of fees which usually
have to be paid upfront before the trader is be able to start trading
in the stock market. There are no commissions, no brokerage fees and no
There are no time restrictions as forex is traded 24 hours a day.So you can trade forex whenever it suits you best.
The most beneficial thing by far is that trading can be done in the comfort of your own home.
Anyone can start to trade online. This is ideal for people who stay
at home, particularly those who do not feel comfortable in engaging in
other online businesses.
With suitable training and a computer with internet access close
at hand, success is quite possible within the confines of the home.
How Does One Trade Successfully in the Foreign Exchange Market?
The purpose of ‘to buy low and to sell high’ must be kept in mind
when trading in the forex. This will be the major goal of a trader who
wants to succeed and become profitable.
The next task close at hand is to know the trends. This means recognising when a particular currency will buy low or sell high.
Thus, forex trading requires systems that have been tried and
tested previously to make certain that any trading decisions made will
have more chance of becoming profitable.
There are a few basic systems available which can be used in forex
trading.Some can be learnt from tutorials or from actual exposure to
the forex market.
Actually We have quite a few systems available for you already in our Forex Section here on Asxnewbie.
There are different strategies used when trading forex. The first strategy most commonly used is technical analysis.
This provides information that a particular price chain reflects
all the necessary information regarding the market. This means a close
analysis of the diverse aspects of the currency like the lowest and
highest prices or the opening and closing prices.
The other strategy that is most commonly used is fundamental analysis.
As the name implies, it looks at the total situation. It focuses
beyond the currency. It also takes into account the situation of the
country, economy, politics and even the rumors which abound in the
marketplace. Thus this requires more exposure and knowledge on the part
of the trader.
The way the Foreign Exchange Market operates assures that there are many openings available to the forex trader to be involved.
There are also many traders who could be possibly interested in
trading forex but are very afraid to take that first hesitant step.
This attitude can be turned around by firstly aquiring a good working
knowledge first and then by taking the necessary steps required to make
your forex adventure a profitable and successful one.
To make things that much easier for you to start trading Forex,To
gain the necessary knowledge needed, but not to put at risk any of your
capital.We at Asxnewbie have made available a FREE TRADING PLATFORM by
which you can use all of our systems and knowledge and it won't cost
you a cent.Just click here to take your first steps to becoming a Forex