How to really make money in forex PART 1

How to really make money in forex PART 1

What is Forex? Popular Exchange renowed as otherwise Forex FX market is used for buying and selling of various currencies and it is one of the fastest growing opportunities for making money online. Transactions of the market is complete, by electronic process (internet and telephone) through an intermediary called Forex broker. However, the "centers" there is great shopping in London, New York and Tokyo. "Centers" Other trade are: Singapore, Frankfurt, Geneva and Zurich, Paris and Hong Kong. Forex market is comprised of various participants: individual trader, institutional traders, banks, other financial institutions (investment companies, pension funds and closed funds, etc.), and governments via their central banks. It is estimated that $ 3.5trillion worth of transactions were traded daily in the market and it's open 24 / 6. Forex market is unlimited market, making it accessible to everyone and easily got out of his players. This makes it impossible to know the number of players on the market at a time.

The history of forex trading, and can be traced to the abandonment of the Bretton Woods agreement in 1971, and in U.S. dollars will no longer convertible into gold. This led to the currencies of the most industrialized nation are becoming more free, largely controlled by forces of supply and demand which acted in the foreign exchange market. Prices were floated day after day, with volumes, speed and price volatility all increasing throughout the 1970s, giving rise to new financial instruments, market deregulation and trade liberalization. In 1980, cross-border capital movements accelerated with the onset of computers and technology, extending market continuum through Asian, European and American time zones. Trading foreign exchange rocketed from about $ 70000000000 a day in 1980 to more than 3.5 trillion U.S. dollars a day in 2008.

Opportunity to make money on the Forex market was shaped by the Bretton Woods agreement was abandoned in 1971, allowing changes in the prices of currencies as dictated by the forces of supply and demand. Making money in Forex is as simple as buying foreign currency and holding it for several minutes, hours, days, weeks or months, depending on your type of trading and selling it when it's appreciated in value or vice versa. This modest act you can fetch more than 100% of capital in few minutes! But as simple as it sounds, it requires respect for the golden rule which is our trading principle forexseed.

Golden rule of successful Forex trading takes place in the right direction at the right price with the right to stop losses and the true goal. Following this golden rule should still be with great precision. Accuracy can only be achieved by formulating profitable equation in which risk is reduced to the lowest barest. Whether or not money will be made in Forex is not a problem because the market is large and highly liquid, the real problem is how to reduce your risk of trading since the market is very volatile. You will succeed Forex Trading, only if they are grateful for that fact and to inculcate in your trading style.