Forex for beginners: how to trade, what to trade, when to trade

As a beginning trader, you would want to grab the opportunity to earn lots of money and of course, start a trading career in Forex. The Forex market is the largest and the most liquid financial market in the world. Unlike the stock market and other financial markets, Forex has no centralized location as it operates 24 hours a day at different locations around the world. Trades in this financial market are done through an electronic network.

In the past, because of the high financial requirements, Forex was only limited to large multinational corporations and financial institutions, such as banks. However, as communications technology advanced and since high speed internet appeared, Forex became available for everyone who is interested in trading by means of it.

Forex trading, for a beginner, is simply the buying and selling of different currencies of the world. This may seem simple enough for everyone, but you should also consider that a lot of inexperienced traders and some experienced traders have suffered huge financial losses in Forex.

You should always keep in mind that besides the fact that Forex can give you a great money-making potential, Forex also has equal risks. Therefore, before you enter this market and trade, you should first consider a few things in order for you be successful in this money making venture, as well as critically evaluate your knowledge and skills.

First of all, you have to know how to trade currencies.

In order to start Forex trading, all you need is a personal computer with an active internet connection, a funded Forex account and a Forex trading system.

There are numerous websites that offer Forex trading. In order to start trading, you have to open and fund an account first with your chosen website. After that, you can now start trading in the most liquid market in the world.

Important: you need to have a fast internet connection in order to keep up with the updates and price movements and prevent yourself from slippages.

Another thing you have to consider is that you should register in a Forex website that offer dummy accounts so that you can practice your skills and strategies in Forex trading. Do it ASAP!

Now that you know how to trade in the Forex market, the next thing you need to know is what to trade. The Forex market involved different currencies from all over the world. It is also traded in forms of currency pairs. Here are the different currency pairs that you should consider trading in the Forex market:

•    EUR/USD

•    USD/JPY

•    GBP/USD

•    USD/CHF

•    AUD/USD

•    USD/CAD

•    NZD/USD

•    EUR/GBP

•    EUR/JPY

•    GBP/JPY

•    CHF/JPY

•    GBP/CHF

•    EUR/AUD

These are the most commonly traded currency pairs in the Forex market. It is up to you to determine which currency pair you want to trade depending on market conditions. If you do it right, you can be sure that you can earn a substantial amount of income.
The next and last thing you should consider is when you have to trade in the Forex market. Since the Forex market is open 24 hours a day, you can trade whenever you like. And, since it is the most liquid, you can get out whenever you like. It is just a matter of knowing if the market condition is ralling or if it is falling.

Forex traders are mostly speculators who try to predict which currency is going to increase in value and which currency will decrease. Speculators use Forex charts to spot a trend and determine when a particular currency will increase or decrease in value.

One thing you should always keep in mind is that sometimes you can always suffer from losses, and it is unavoidable. Be prepared and never lose your inspiration. This is why it is better to both have substantial amount of money and a good motivation to trade in Forex.