The market where currencies are traded is what we call the forex market. With trillions of dollars at stake daily, currency trade is the biggest market in the globe.
Aside from being the biggest market in the world, the Forex market is also the most liquid and trading is over the counter. Traders have a choice of which dealers to trade with and can compare process. In essence, bigger dealers have cheaper prices since they can play better with global banks.The Forex trade market is open 24 hours a day, five days a week and currencies are traded all across the globe through major financial centers.
It all boils down to trading currency pairs simultaneously . The value of a currency is always compared to the currency it is being paired with. Currency pairs are defined as base currency and counter currency. In trading, how much counter currency equates to a monetary unit of the base currency is factored in for profitablity. Take a look at it from this standpoint, when purchasing a currency pair; it’s the base unit that you are purchasing while the counter currency is sold.
In the rich history of the Forex market, many have tried to try their luck in the trade. Some failed from the get go while others tasted a bit of heaven but was still doomed to fail. Compared to the money market, don’t rush your career.
Have a keen eye for numbers because you’re in the business of trading money. Here are some things you should consider:
1. Get the right mindset – Don’t the chicks before the eggs have even hatched so don’t count figures that aren’t yours yet.
2. Find yourself a mentor – Pay someone cash to guide you through. Rookie mistakes could end your career early.
3. Discipline – strictly follow your trading plan and schedule and don’t be the one who would not break it.
4. Facing a drawdown – Forex is ok not the same as that of an office job. Salaries and payout should be forgotten and stick only to the PAYLOAD!. Losing money and value from time to time is perfectly normal
Now you know the tools of the trade, you can start the game. The forex market is a risky business but it’s worth it. To learn more about forex trading, please kick here.