The Win, Loss, and Unknown About Forex Trading

The Foreign Exchange is the largest exchange market in the world in terms of day to day cash transaction. With the prospect of quick, hefty profits, and the explosion of internet technology and availability, trading on the Foreign Exchange (or Currency Exchange) has dramatically grown in popularity among investors of all types. The private investors are to be considered as a really tiny proportion when it comes to the entire Forex market. Every investor should be aware that the Forex market is highly volatile but this volatility is likely to come with different opportunities when it comes to profit making. Note that trading in this market isn’t easy. As with any other securities market, the successful trader must become knowledgeable and savvy with regard to the currency that’s being traded.

In any business venture, preparation and knowledge are the keys to success. Without this sort of insight, the attempt to make a profitable financial decision can only end in disaster and failure, regardless of your level of motivation and determination or the amount of money you plan to invest.

In Foreign Exchange (Forex) market, the above rule also applies as you will be investing a certain sum of money with the intention to achieve a profitable outcome. The more preparation and knowledge you have, the better chances you will achieve a profitable result. In all kind of business venture, there is a risk involved, and it is applicable to Forex as well although Forex is probably riskier in nature, with a higher stake in term of profit and loss. It is boiled down to risk management. Without proper preparation and knowledge, there is no way for you to manage risk.

Forex trading is fast becoming a career alternative for many individuals, as it should. It offers flexible hours, work from home option, and high income potential. Unlike stock markets that you can only trade at certain period of time, you can trade Forex at any time 24 hours whether it is in the middle of the night or the middle of the day. Before the Internet days, people involved in forex trading were the financial elites and rich individuals. Now the world of forex trading and the large potential profits that can be realized from it are open to all investors if they simply have a home computer and access to the Internet.

This website is developed with the objective to prepare and build your Forex kwowledge so that you will achieve a profitable result in trading Forex.

Forex Market

What is Forex? Can we make a living trading Forex? Why do most people lose money in trading Forex, and others make huge profit? Well, these are the answers that we would like to know. Forex market started in 1971 when US President took away the US currency from gold standard. It allows US curreny to float against all other currencies with different values and fluctuations. The exchange rate of one currency to another currency is determined simply: by supply and demand – exchange to which both parties agree.

The Forex market is considered an Over The Counter (OTC) or 'interbank/interdealer' market, due to the fact that transactions are conducted among Financial Instituations or Banks via telephone or an electronic network. Trading is not centralized on an exchange center, as with the stock and futures markets. A true 24-hour market from Sunday 5:00 PM ET to Friday 5:00PM ET, Forex trading begins each day in Aukland, and moves around the globe as the business day begins in each financial center, first to Tokyo, Singapore/Hongkong, London, and New York. Unlike any other financial market, investors can respond to currency fluctuations caused by economic, social and political events at the time they occur - day or night.

You should be able to find all kind of information about Forex from Internet. Most of information are freely available, and you can start learning to trade Forex by going through this information. But learning how to trade Forex doesn't mean that you will make money in Forex. You need more than just 'learning' in order to be consistently profitable in trading Forex. Anyway, it is essential to acquire this educational information before you decide to go into Forex trading.

By the way, majority of people lose money in trading Forex and later give up. They fail because of several reasons - under capitalization, lack of knowledge, no clear trading plan, poor risk management skills, lack of discipline. Therefore, not many people successfully make a living by trading Forex. Only a small group of people achieve a consistent profit in trading Forex because they understand fully the whole working mechanism, concept, and knowledge of Forex. As we all are not different from these successful traders, we can also earn a living though Forex provided we spend our effort to acquire the Forex knowledge properly.

You 'plan your trade and trade your plan'. A good plan will remove all the emotions from your trades. Once you can achieve this level with a consistent profit trade, you can consider to make a living through Forex.

The win and loss trades are part of the parcel of trading Forex. Do not ever try to achieve 100% winning trades. It is better to put efforts to achieve a consistent profit in a long period of time than to put efforts to achieve 100% winning trades. Why? It is impossible to achieve 100% winning trades. But it is possible to achieve a consistent profit.

Forex Brokers

Besides information on how to trade Forex, you will also find a lot of information about forex brokers on your Internet search. Brokers are a big topic in Forex as you need a broker to trade (unless you are very rich and you can go through a proper bank to trade). For most of the retail traders, like most of us, you need to deposit your money into broker account before you can trade.

The questions are: which broker should we open an account with? Is the broker reliable? Well, it is not a straight forward answer to these questions. We believe that you will have a lot of questions about brokers. However, One of the most important questions will be: If the broker disappears or goes into brankrupcy, can we get back our money? Unfortunately, most of the time, you will not get back your money. Therefore, it is important to check the broker's profile before you put your money with the broker.

You can find a lot of information through Internet on the Forex broker review. However, you will not easily figure out which broker is reliable and suitable to you. You will find reviews about the good and bad things about brokers from reviewers who personally encountered these experiences with those brokers. Some reviews are very biased, and some are neutrals. It is important to look at those reviews before you decide to open an account with a broker. Our website here will provide the most neutral Forex reviews/comparisons of Forex brokers, and we hope that it helps you to find a reliable broker.

Forex Strategies

What if we can find the best broker, can we make money from Forex market? It is still quite far off. You need to have a strategy to trade Forex. You can find a lot of Forex strategies on the Internet. Some strategies are freely available, and some you have to pay for them. You will probably encounter people offer you a 'holy grail' strategy that they promise their strategies will make consistentantly profitable trades. They have all the statistics to back them up, such as the testimonials and past trade results, etc. However, once you have purchased and implemented their strategies, you do not get the result that you want. Is there anything wrong with the strategy (you think it is a scam strategy) or is it you that you do not understand? Most of the time, the sellers/authors are over-hyped on their claims. (Well, this is all the marketing technique, right. Otherwise, you will not be interested to purchase).

The important message is that you do not jump and immediately buy it although they even promise you a refund if it does not work. The reason is that you do not want to waste your time. You need to do a research on the author background and its strategy. If the strategy is what they claim to be (so good), there should be a good review from other people who have used them on the Internet. If you can not find any review, you better stay away from them unless you think that the cost to purchase the strategy is not a big deal to you.

Eventhough if the strategy is workable, you still need to know how to apply it at the right condition and time. Forex market changes all the time and there is no one strategy that works forever. The most important is NOT the strategy itself, but it is how you APPLY the strategy at the right situation and at the right time. You need to understand how the Forex market works in order to apply the strategy properly.

There are people who use the free avialable strategy, refine them with their own experiences, and can consistently make profit. At the end of the day, whether you learn the strategy from a free source or you purchase one, you must refine those strategies to suit youself based on your experience, behaviour and psychology of your trading. In other words, you must have your OWN strategy in order to be successfully in trading Forex.

What we mean "your OWN strategy" can be the one that you purchased, you learn from others and Forex Workshop, or you create one based on your own experience, etc. The key is that you must embrace this strategy to be your own strategy (trading methodology) through refinement based on your own trading experiences. You have to become intuative and it means that you become an expert in what you are doing.

What we mean strategy is that it can be a simple strategy, not necessarily a complicated one. We just need to emphasize again: The key to sucess in Forex Trading is to know how to APPLY the strategy at the right situation and time, not the strategy itself. Therefore, you need to acquire Forex knowledge where this website provides. We have also summarized Forex Core Strategies in our website here.

Forex Platform

All brokers should provide you with a Forex platform (software and its charting) to trade. Some brokers have a comrehensive and complicated charting, and some have simple ones. Well, the meaning of "comprehensive and complicated" are relative depending on your background and experiences.

Some brokers use their own propriety platform, and some use third party ones. The most popular third party platform is Metatrader software. This metatrader software has been licensed/used by quite a lot of Forex brokers. The advantage of using the Metatrader software is that you have quite variety of brokers to choose, and if you do not like this particular broker, you can switch to other broker who uses Metatrader software without to learn a new platform again. Other third parties who provides the platform are Currenex, and IT Finance (Charting only). There are some companies who provide a special customized software, which you need to pay to use it. They claim that their software will give you special signals or indicators to help you in your trading.

Forex Training/Course/Workshop

Must we attend Forex Training/Course/Workshop in order to be successfully in Forex trading ? The answer is definitely 'NO'. Well, we need to clarify this statement. It is not guaranteed that you will consistently make profit in Forex after you attend/buy Forex Training/Course/Workshop. However, with the proper guidance from the 'genuine' Trainng/Course/Workshop provider, it will short-cut your learning curve, and therefore you are able to learn Forex trading much faster and in a proper way.

There are some people who never attend/buy the Forex Training/Course/Workshop, and yet they can be successful in trading Forex. Of course, these people will probably pay through the 'time' (longer time to learn) or they pay through the 'market' (learn from the Forex market by losing money).

If you would search through Internet for the Forex Training/Course/Workshop, you will find plenty of them. Please do no go and buy those Training/Course/Workshop immediately. Do not just 'believe' whatever written on their websites about consistent profit statistics, holy grail strategies, committed supports, etc. Those are all marketing materials. Finally, do not attend/buy 'cheap' Training/Course/Workshop and you will waste your time and money. It is better to pay a good and slightly expensive one as you can easily gain back your investment. You must do some researches to find out more about the companies and their trainers before you commit financial on those Traning/Course/Workshop. Unfortunately, if you are new, it is very difficult to find out the Training/Course/Workshop that is worth your money. We believe this website will help you. We have a list of Forex Training/Workshop reviews.

Am I Suitable To Trade Forex ?

Are we all suitable to trade Forex? Or we probably should ask: Can we all make money in Forex? The answer is obviously 'NO'. It is impossible for all of us to make money in Forex. Therefore, it is a fact that Forex is not suitable for everybody. If that is the case, how do I know that I am suitable for Forex? This is again a very difficult question to answer. Unless you try, you will never know. But if you are interested to make money in Forex, you need the followings:

• devotion of your time to read and learn
• create your trading plan and strategy
• be patience and dicipline to wait for trading opportunity
• understand your risk profile (your psychology of trading)
• have some spare cash
• be pasionate in trading

In other words, you have to treate a Forex trading like your BUSINESS, NOT your HOBBY. You can start with a hobby, but it will eventually become your business.

Do I need to be full-time in trading Forex in order to be successful? No, you can be successful in Forex by trading part-time. Even if you are full-time, you will not spend 8 hours a day by staring at your computer screen. You should manage your trading time, not let the trading manages your time.

Your have to remember that "successful traders are CONSTANT LEANERS. They have to keep UP-TO-DATE KNOWLEDGE about Forex market in order to trade profitably."

Finally, we hope that you will find this website helpful and wish you be successful in Forex trading!

Trading foreign exchange carries a high level of risk, and may not be suitable for all investors. It is a challenging and potentially profitable opportunity for educated and experienced investors. However, before deciding to participate in the Forex market, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose.

All information on this website including any review/product/traning or opinions and analysis is for educational purposes only and is not intended to provide financial advise. The author of this website does not accept any responsibility towards the accuracy content of this website.