This is an obsession. Here is a completely open field that virtually anybody can exploit. It use to be for the mega rich people, the gigantic companies and banks. They're trading foreign currency's.. Can you imagine this is a 1.2 trillion greenback a day being traded. That's 1.2 TRILLION a day. Now with the web you you also can trade the foreign currency's. You can set up an account with as little as $300.00 up to whatever. Regular accounts generally begin with $3000.00.
You can leverage you funds 100 to 1. SO you'll be controlling 10,000.00 or one lot in currency's for $1,000.00 and for every pip on movement you can make $100.00. With the mini account you'll control 1 tenth of rather a lot. $1000.00 for $100.00 and your pip is worth $1.00. Just so you will understand a pip is what an increment movement in a currency is. You purchase it if you suspect it will go up and sell it if you suspect it will go lower. Of course there are charts and all types of tactics to say what is going to happen. It just takes learning the in's and out's, ups and downs.
There are a large amount of different currency's but here are the key ones that are traded. USA/YEN USA/Japanese GBP/USA British Pound USA/EURO USA/EU Buck is Western european USA/CHF Swiss Franc USA/CAD USA/Canadian EURO BUCK/YEN There are no commissions and no costs only narrow Dealer spreads. These spread vary dependent on the trades. Major pairs are 3 to 5 pips. You will discover more about all this when you start out. The smartest thing to do is to begin with a trial account or what we call a paper account where you do everything as though it was real cash but it's only on paper. So you get to learn the in's and out's and learn to read the charts and how to understand the basics.
These are the world events that effect the currency's. There are many different strategies. Each have their strength's and weak points. They each deal with alternative ways at having a look at the charts and their movements. Desire some concepts? There are Scalping trades, surfing charts, sailing and many more. It's thrilling and fun, and infrequently a drag. Sometimes you will win 100 to 500 pips. Then there are times you'll lose pips as well. You'll never win all of the time. But thats where there account management comes in. You learn how to control your risk taking.
Sometimes the largest sin or failure comes when you let your feelings become involved. EVEN the enormous shots occasionally let their feelings get involved. Most the time it doesn't work and will cost you. So with good account management understanding the diverse charts you can take $300.00 and turn it into $6000.00 in 6 months or less.
You can leverage you funds 100 to 1. SO you'll be controlling 10,000.00 or one lot in currency's for $1,000.00 and for every pip on movement you can make $100.00. With the mini account you'll control 1 tenth of rather a lot. $1000.00 for $100.00 and your pip is worth $1.00. Just so you will understand a pip is what an increment movement in a currency is. You purchase it if you suspect it will go up and sell it if you suspect it will go lower. Of course there are charts and all types of tactics to say what is going to happen. It just takes learning the in's and out's, ups and downs.
There are a large amount of different currency's but here are the key ones that are traded. USA/YEN USA/Japanese GBP/USA British Pound USA/EURO USA/EU Buck is Western european USA/CHF Swiss Franc USA/CAD USA/Canadian EURO BUCK/YEN There are no commissions and no costs only narrow Dealer spreads. These spread vary dependent on the trades. Major pairs are 3 to 5 pips. You will discover more about all this when you start out. The smartest thing to do is to begin with a trial account or what we call a paper account where you do everything as though it was real cash but it's only on paper. So you get to learn the in's and out's and learn to read the charts and how to understand the basics.
These are the world events that effect the currency's. There are many different strategies. Each have their strength's and weak points. They each deal with alternative ways at having a look at the charts and their movements. Desire some concepts? There are Scalping trades, surfing charts, sailing and many more. It's thrilling and fun, and infrequently a drag. Sometimes you will win 100 to 500 pips. Then there are times you'll lose pips as well. You'll never win all of the time. But thats where there account management comes in. You learn how to control your risk taking.
Sometimes the largest sin or failure comes when you let your feelings become involved. EVEN the enormous shots occasionally let their feelings get involved. Most the time it doesn't work and will cost you. So with good account management understanding the diverse charts you can take $300.00 and turn it into $6000.00 in 6 months or less.
About the Author:
Todd Watson trades in Forex, tests Binary Options and is always hunting for the next best Forex strategy.
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