What is Forex and how to make a lot of money?
Forex, or foreign exchange market is a place where traders buy and sell currencies or other assets. The role of the players in the foreign exchange market are both traders with different sizes of deposits, and financial institutions like banks, foundations, etc.
Understanding of the principle of the Exchange Forex allows traders to earn on fluctuations in the value of currencies. The essence is simple: buy cheaper, sell more. Buy positions is also called long (Buy-buying) for sale-short (Sell).
Forex-how it works?
Today, all traffic through the Internet remotely (see article the concept of Internet trading). Have long been traders do not stand in "the pit" on Wall Street, shouting "buy!" or "Sell!" Today everything is much more convenient, you can trade from anywhere you have Internet access.
The trader is registered with a trusted broker (we recommend you Review, Alpari and InstaForex), opens an account with the appropriate trade conditions and starts trading. Broker transmits the application of the trader for trading position opening larger to the broker who brings them to the market.
What is a trading strategy trader? Someone is trading on the news, someone skal′piruet, someone like the delights of technical analysis. Anyway, it is important to only one-the result of the trade, that is, its profitability and stability.
That is money the trader?
The trader's profit is the number of points (or $ United States cents), which he received after the closing of the transaction or group of transactions. A good trader captures profits (in the diary or otherwise) every day, week and month. When people talk about the profitability of the trade, most often mean that monthly profit.
Traders are selling steadily, show the average monthly gains of 5 to 10%, sometimes up to 20%. Profit above 20% per month more often get aggressive traders, for example, scalpers.
When you open a position (deals) we buy at disadvantageous to us, which is already considered by the spread and/or the broker's Commission. Spread (see article Forex Spread) when opening a deal is always present, because the broker gets a portion of it in the form of remuneration, the Commission is found in a small number of brokers as an additional one-time fee for opening a position.
Also do not forget about a swap (swap), which is a charge for transferring a position through the night. How to use swap to improve the efficiency of their trade, you can find out from the article "Carry Trade Strategy".
Trading system (strategy) and tactics in Forex trading
A successful trader either has its own or someone else's trading system (TC), modified, or trades on intuition. Intuition-a separate theme, now say a few words about the VEHICLE.
TC is the basis of any profitable trading. Not having a clear algorithm of actions, a trader in the long run, will lose his deposit. The prices only 2 options: to go up or down, in other words, the probability of guessing 50na50. But not long term trading in plus, not having specified a trading plan.
Be sure to test your VEHICLE's history, then on a demo account-if everything is good and stable income, go on cent account.
There are traders who prefer to follow the signals and not do analysis yourself. This approach is justified in the absence of free time for trading or wish to diversify or to diversify their trade. For such traders, ideal services from Alpari- ZuluTrade and MirrorTrader. Also there is nothing to prevent a trade Advisor (robot), that's only really profitable units (Please rate UltraFibonator from the famous trader of Vladislav Gilkey).
To sum it up. Forex Exchange is the perfect place to realize their potential, if you want to make your mind. The trader is an interesting profession. The trader is obliged to continuously learn, grow as a person and a professional. There are difficulties, but those who are firmly walking on this path, they say, that is not traded him no matter what.
The decision is yours. We wish you success in the Forek Exchange!
Profitable Forex trading
The concept of online trading