Forex For Beginners

Forex trading is a great way to use your free time to earn some extra money or get started in a new career, however, for a beginner it's best to start slowly and have some forex training before and during your early trading days. While it's certainly not necessary to have any forex education beforehand, you will be better able to make good, profitable trades and minimize your risk if you have more than some basic knowledge of the currency trading market. With forex trading you are simply selling one currency while buying another, hopefully making a profit at the same time. Currencies are always traded in pairs and while there are many currencies that can be traded, the main ones are the United States Dollar (USD), the Euro (EUR), the Japanese Yen (JPY), the British Pound (GBP), the Swiss Franc (CHF), the Candian Dollar (CAD) and the Australian Dollar (AUD). Forex quotes look something like this: EUR/USD 1.5555 which means that one Euro is equal to 1.5555 United States dollars. If the quote looks like this: EUR/USD 1.5555/1.5557 it means that you will be paid the lower price and the broker will sell it for the higher price. The 0.0002 difference will go to the broker as a sort of commission. Brokers don't actually get commissions, they keep this small difference which is known as a pip. When you trade currency, you won't just be trading one Euro for one US dollar, you'll be trading in lots of 10,000 or 100,000. To afford this you'll likely start by trading on margin using money that's borrowed. To minimize your risk of future losses, make sure to only use money that you can afford to lose. There are many forex training courses on the market and you must beware of any that offer you a push-button system enabling you to strike it rich immediately. Know that, starting out, you will make mistakes but as you continue in your forex training, you'll become better at reading the charts and graphs that appear on your computer screen showing you what the market is currently doing. Forex trading is part knowledge and part luck. The more you know about all of the different trading strategies and things like Japanese candle stick formations, triangle formations, support and resistance and Fibonacci Retracement, the more successful you will be. Always remember to use your common sense when trading currency; don't just blindly follow a computer program. Forex training courses extremely beneficial when you are beginning to trade forex. By getting involved in forex training your chances of success are greatly increased as your trades will be less of a 'stab in the dark'. In a few months you might be able to give up your day job or take that holiday that you've been dreaming of taking.