Home Page Forex Software
 
 
 

Day Trading Forex Live

Главная

Forex Beginners Guide - 4 Pivotal Rules to Trading Success

This forex beginners guide details the 4 most important rules to becoming a successful trader. The overwhelming majority of struggling retail forex traders would tell you that it was their trading strategy holding them back from success. In over 13 years of trading, I can say for certain that your trading strategy is only 20-30% of what it takes to be a profitable trader. That is why you can give two traders the same trading strategy, and one will succeed while the other will fail.

If you're struggling to become a profitable trader, the rules I cover in this beginners guide will be hugely beneficial. Additionally, the 4 different rules covered in this forex beginners guide will apply to any market you choose to trade, any time frame, and most trading strategies.

Forex Tutorial: What is Forex Trading?

What Is Forex?
The foreign exchange market is the "place" where currencies are traded. Currencies are important to most people around the world, whether they realize it or not, because currencies need to be exchanged in order to conduct foreign trade and business. If you are living in the U.S. and want to buy cheese from France, either you or the company that you buy the cheese from has to pay the French for the cheese in euros (EUR). This means that the U.S. importer would have to exchange the equivalent value of U.S. dollars (USD) into euros. The same goes for traveling. A French tourist in Egypt can't pay in euros to see the pyramids because it's not the locally accepted currency. As such, the tourist has to exchange the euros for the local currency, in this case the Egyptian pound, at the current exchange rate.

The need to exchange currencies is the primary reason why the forex market is the largest, most liquid financial market in the world. It dwarfs other markets in size, even the stock market, with an average traded value of around U.S. $2,000 billion per day. (The total volume changes all the time, but as of August 2012, the Bank for International Settlements (BIS) reported that the forex market traded in excess of U.S. $4.9 trillion per day.)

One unique aspect of this international market is that there is no central marketplace for foreign exchange. Rather, currency trading is conducted electronically over-the-counter (OTC), which means that all transactions occur via computer networks between traders around the world, rather than on one centralized exchange. The market is open 24 hours a day, five and a half days a week, and currencies are traded worldwide in the major financial centers of London, New York, Tokyo, Zurich, Frankfurt, Hong Kong, Singapore, Paris and Sydney - across almost every time zone. This means that when the trading day in the U.S. ends, the forex market begins anew in Tokyo and Hong Kong. As such, the forex market can be extremely active any time of the day, with price quotes changing constantly.

Spot Market and the Forwards and Futures Markets
There are actually three ways that institutions, corporations and individuals trade forex: the spot market, the forwards market and the futures market. The forex trading in the spot market always has been the largest market because it is the "underlying" real asset that the forwards and futures markets are based on. In the past, the futures market was the most popular venue for traders because it was available to individual investors for a longer period of time. However, with the advent of electronic trading and numerous forex brokers, the spot market has witnessed a huge surge in activity and now surpasses the futures market as the preferred trading market for individual investors and speculators. When people refer to the forex market, they usually are referring to the spot market. The forwards and futures markets tend to be more popular with companies that need to hedge their foreign exchange risks out to a specific date in the future.

What is the spot market?
More specifically, the spot market is where currencies are bought and sold according to the current price. That price, determined by supply and demand, is a reflection of many things, including current interest rates, economic performance, sentiment towards ongoing political situations (both locally and internationally), as well as the perception of the future performance of one currency against another. When a deal is finalized, this is known as a "spot deal". It is a bilateral transaction by which one party delivers an agreed-upon currency amount to the counter party and receives a specified amount of another currency at the agreed-upon exchange rate value. After a position is closed, the settlement is in cash. Although the spot market is commonly known as one that deals with transactions in the present (rather than the future), these trades actually take two days for settlement.

What are the forwards and futures markets?
Unlike the spot market, the forwards and futures markets do not trade actual currencies. Instead they deal in contracts that represent claims to a certain currency type, a specific price per unit and a future date for settlement.

In the forwards market, contracts are bought and sold OTC between two parties, who determine the terms of the agreement between themselves.

In the futures market, futures contracts are bought and sold based upon a standard size and settlement date on public commodities markets, such as the Chicago Mercantile Exchange. In the U.S., the National Futures Association regulates the futures market. Futures contracts have specific details, including the number of units being traded, delivery and settlement dates, and minimum price increments that cannot be customized. The exchange acts as a counterpart to the trader, providing clearance and settlement.

Both types of contracts are binding and are typically settled for cash for the exchange in question upon expiry, although contracts can also be bought and sold before they expire. The forwards and futures markets can offer protection against risk when trading currencies. Usually, big international corporations use these markets in order to hedge against future exchange rate fluctuations, but speculators take part in these markets as well.

Note that you'll see the terms: FX, forex, foreign-exchange market and currency market. These terms are synonymous and all refer to the forex market.

MarketGurukul

Главная

Популярные Воспроизвести все

Candlestick Analysis in Hindi - Продолжительность: 7 минут 42 секунды

  • 1 007 363 просмотра
  • 5 лет назад

Rs. 4 Lakh Profit in a Single Day | Crazy Trading by a 22 Year Old - - Продолжительность: 24 минуты

  • 492 933 просмотра
  • Год назад

Candlestick Patterns Hindi - Candlestick Analysis 2 - Must Watch for Beginners - Продолжительность: 12 минут

  • 406 763 просмотра
  • 2 года назад

How to use Moving Averages in Trading - Intro Part 1 - Продолжительность: 21 минута

  • 368 999 просмотров
  • 5 лет назад

What is Technical Analysis in Hindi -MUST WATCH 1 - Продолжительность: 6 минут 38 секунд

  • 323 057 просмотров
  • 5 лет назад

What is Forex Trading - Hindi Tutorial - Продолжительность: 7 минут 46 секунд

  • 315 335 просмотров
  • 5 лет назад

How to use Fibonacci Retracement in Stock Trading - 2 Hindi Tutorial - Продолжительность: 15 минут

  • 290 323 просмотра
  • 5 лет назад

Truth about Forex Trading 1 - Hindi MUST WATCH - Продолжительность: 9 минут 8 секунд

  • 288 143 просмотра
  • 5 лет назад

Spinning Top Candlestick Hindi - Candlestick Analysis 3 - Продолжительность: 8 минут 28 секунд

  • 257 669 просмотров
  • 2 года назад

How to use RSI Indicator Part 1 - Продолжительность: 25 минут

  • 238 718 просмотров
  • 2 года назад

What is Technical Analysis in Hindi - MUST WATCH 2 - Продолжительность: 4 минуты 52 секунды

  • 202 147 просмотров
  • 5 лет назад

3 Principles of Stop Loss Strategy Hindi - Продолжительность: 12 минут

  • 201 395 просмотров
  • 2 года назад

Ещё 100+

Все плейлисты

Basics - Плейлист

Free Online Charting Indian Stocks - Плейлист

How to Use Moving Average Lagging Indicators -Step by Step - Плейлист

Free Technical Analysis Course for Indian Stock Market - Плейлист

Free Forex Trading Technical Analysis Course in Hindi - Плейлист

How to Be Successful in Life - by Edward Ji - Плейлист

Candlestick Analysis From Basics in Hindi - Плейлист

Technical Analysis From Basics : - Плейлист

Beginners Guide to Forex Trading: - Плейлист

Все видео Воспроизвести все

How to Pick Easy & Best Stocks for Intraday Trading - Продолжительность: 14 минут

  • 5 месяцев назад
  • 46 229 просмотров

How to Pick Easy and Best Stocks for Intraday Trading:

For Online Demat Account: https://goo.gl/Rh4M9r Use Promo Code MG400 and get Rs. 400 of brokerage free.

If you need help, Give a MIssed Cal.

7 Greatest Intraday Trading Mistakes - Продолжительность: 23 минуты

  • 5 месяцев назад
  • 85 606 просмотров

7 Greatest Loss Making Mistakes by Intraday Traders :
Why Intraday traders Lose money ? Answered in detail.

For Online Demat Account: https://goo.gl/Rh4M9r
Give a MIssed Call to : 08030636309 fo.

What is Open Interest Simple & Easy - Продолжительность: 18 минут

  • 5 месяцев назад
  • 27 167 просмотров

Hi Friends, Use Promo Code MG400 when you Open a Demat Account from here
https://goo.gl/W7QtnC & Get Rs.400 in Free brokerage.

Install Share Market Trading Course from here:
https://play.google.co.

What is the Right Time to Trade - Intraday Trading - Продолжительность: 10 минут

  • 6 месяцев назад
  • 59 113 просмотров

Use Promo Code MG400 when you Open a Demat Account from here.
https://goo.gl/W7QtnC & Get Rs.400 in Free brokerage.

Install Share Market Trading Course from here:
https://play.google.com/store/app.

200% Profit in 2 days - Intraday Futures Trading - Продолжительность: 13 минут

  • 6 месяцев назад
  • 42 443 просмотра

Free Live Charts for Indian Stocks on Android App - Продолжительность: 9 минут 3 секунды

  • 6 месяцев назад
  • 19 450 просмотров

Android App for Free Live Charts Indian Stocks Cash & Future:
https://tinyurl.com/indiancharts

For Live Charts on Desktop go to http://www.marketgurukul.com and click on Live Chart Link on the top.

Back with A Bang Tomorrow. Thank 'YOU' All for your Love and Support. - Продолжительность: 79 секунд

  • 6 месяцев назад
  • 11 009 просмотров

God bless you bhai log.
Mom is fine now and everything is fine.
Your best wishes, love and support are the greatest assets of my life.

Coming back with a bang tomorrow before the market ends.

Multi Time Frame Analysis for Higher Profits - MACD Hindi - Продолжительность: 22 минуты

  • Год назад
  • 67 113 просмотров

Doubled his Account in just 2 Months with Simple Trading - Success Story - Продолжительность: 10 минут

  • Год назад
  • 55 737 просмотров

How Bhaskar doubled his Account in 6 months. While on a Job - Продолжительность: 7 минут 47 секунд

  • Год назад
  • 45 008 просмотров

This is a Success Story that I want to share with you all.
The Hero is Mr. Bhaskar, he has a day job and so can't trade intraday.

So he takes positional trades based on our RSI Trick , Watch the.

Fibonacci Live Trading with Money Management - Продолжительность: 23 минуты

  • Год назад
  • 31 816 просмотров

How to Profit from Random Trading - Answer to Mike Smith in English - Продолжительность: 21 минута

  • Год назад
  • 17 297 просмотров

One of our Subscribers Mike Smith has few interesting questions on our Random Trading with Money management videos.
Primarily there are two questions. 1) What's the best Risk to Rewa.

Brokers | VPS | Signals | Articles FX

2010-2018