Day 2 – Forex Basics


Because Forex Trading is such a VAST subject, many beginners simply don’t have a CLUE about where to start. That’s where we can help.

The first of our 5 steps to start trading is entitled “Forex Basics” and we’re going to give you a run‐down of exactly how Forex works and what you need to know in order to make it work for you.

Although forex is highly profitable (and many people are pulling down some nice numbers with it) it is still pretty hard to digest all at once and so by breaking the whole process up into 5 easy steps, we hope to give you a great reference point for your forex information needs.

How To Make Money

Forex is simply the purchase and sale of different types of currency, with the expectation that the purchased currency will increase in value and earn you a profit when you sell it.

For the majority of traders, the biggest pitfall they face when starting is the understanding of how the two types of currency fit into the whole trading principle.

What I mean is that although you have two currencies on your charts & sheets, you only really need to pay attention to the currency you are purchasing & selling because that is the one that’s going to make you the money.


So, in really simple terms, you need to buy currency which is going to shoot up in price and then sell it while the price is high. Obviously, a crystal ball wouldn’t go a miss here – because there are literally thousands of different factors which determine when and by how much a currency pair will increase by…

Ever seen one of the sites selling something called a “Forex System”? These little packages are popping up all over the Internet and are incredibly useful for helping you with “trend spotting”.

Although you need to be careful with which ones you “trust”, you can be sure that most of them will give you some pretty decent information on how to spot good trends, otherwise known as “signals”.

Where to start…

Starting in forex is a big leap for anyone. There’s so much to learn and so many things you want to cover that it can be extremely daunting and even boring to have to sit down and see what it’s all about…

Instead of having to sit down and digest masses of information, we’ve found the hands‐down best approach to making forex work for you is by opening a demo account with a forex broker OR forex trading platform.

Let’s by crystal clear with those three terms:

Demo Account – A “forex simulator” which allows you to trade “fake money” in a simulated market. This is great for testing the waters without risking a dime of your own cash.

Forex Broker ‐ An intermediary body that makes money through commission fees. Handles buyers’ and sellers’ orders.

Forex Trading Platform – A system which you use to trade forex. This is normally the software / website provided by the forex broker… however some independent forex trading platforms use different forex brokers.

By opening a demo account, you’ll be able to trade to your heart’s content without having to worry about “risking” a single dollar.

However, as you’ll discover in the next step, you need to be careful about which demo account you get because some are definitely better than others… believe me.

Normally, at this point, most forex guides give you extremely detailed plans about what everything means and what you should expect from trading… however our advice to you about how to “get started” is simple:

We’ve found it is FAR EASIER to start trading first with a demo account and THEN working out what each of the options and notations mean rather than baffle your mind with masses and masses of content to start with.

Sure, it’s cool to have a reference so that you can easily refer to what the various things mean, but we strongly advise you “dive” straight into a demo account.

Even if you spend a couple of months with the account, making and losing a bunch of “fake money”, you’re not risking a dollar of your own cash which means that you can afford to experiment and learn whilst you gain experience.

To some of you reading this, what I’ve just written might sound like “bad advice” but guess what? I’ve learnt over my life that experience is something which cannot be taught. It’s the lessons that experience teaches us which hold more credibility and stature in our minds… not what we learn in books.

You can learn what every piece of forex information means but if you don’t have any experience of them, you’ll struggle to put them into perspective when the time comes to start trading.

Although we’re not “anti‐learning”, we ARE all for helping you get the best out forex by “learning on the job”. And since demo accounts have been created for this very purpose, we strongly advise you “train” on those and get a feel for the trading environment and what you can expect.

Even if you don’t know anything about forex, just get stuck into a demo account and start pushing buttons. Here’s the deal – if you do something wrong, you won’t lose ANY money and I guarantee you won’t do it again. Ever.

Next Steps:
1. Signup for a broker – the best broker we’ve found is Easy Forex. You can deposit money in a variety of different ways, including credit card payment, and you can start for as little as $100

fap-turbo

You can Read our full review or Visit the Website by Clicking Here >>

 

2. Select an automated trading software – one that will sync with your broker account. From our research, the most accurate and most aggressively back-tested software is FAP Turbo.

fap-turbo

You can Read our full review or Visit the Website by Clicking Here >>


 

Previous Lessons:

Day 1
 
 

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