Like many Forex traders, I started from knowing nothing about Forex. To something about it. There are many articles about Forex beginners out there, so this article doesn't really add to what has already been told. But it's just my personal journal that I would like to note down. Just maybe my version of Forex beginners is more easily digest than what is already out there.
I will start with the 3 points, you need to:
1) Make pips
2) Keep pips
3) Repeat
Concise and direct. We shall go deeper into the Whats and Hows and Whys. Lets keep reading.
Just like the babies shown in the banner, you need to read and learn as you grow, or in any sports you play, you need to be fit to play the game and not play the game to be fit. And Forex is exactly this. When you play the game, you will win and you will lose, so by being fit, you injure less, you lose less. Then you will be able to achieve 1,2,3.
Advise: Be prepare to LOSE. If you don't, you may stop reading and go back to your comfort zone of winning everyday. If not, let's get started.
What is Forex?
In long, "Foreign Exchange Market". The largest financial market in the world, with volume close to $5 trillion a day. All you need is just keep 0.00000001% of this a day. And always keep this in your mind. "Forex is AWESOME!"
What is traded in Forex?
Currencies are traded, in pairs, through brokers. E.g. Euro & US Dollar (EURUSD) or US Dollar & Japanese Yen (USDJPY). You are not buying anything physical, but rather a "share" in the countries economy. In general, the exchange rate of a currency versus other currencies is a reflection of the condition of that country's economy, compared to the other countries' economies.
In the past, only the wealthy people could play this game. Now, because of the rise of the internet, Forex trading firms are able to offer trading accounts to people like you and I. We are considered "retail traders". All you need is a computer, a high-speed internet, and the beginner lessons that can be found all over the web.
Which currencies are traded?
Generally the popular ones are traded more often. The chart below shows the distribution report of the currencies. USD is the most traded currency, followed by EUR, JPY, GBP and so on. Others are simply others, trust me, as a beginner, even advance retail traders seldom touch on others.
When can currencies be traded?
The market is open 24 hours a day. You can simply click on some of these links to view the market hours
http://fxtrade.oanda.com/analysis/market-hours
What are the advantages of trading currencies?
There are disadvantages too. But I will just skip blogging them down. You are required to do your own proper risk management. By doing so, you already found out the disadvantages of Forex.
So this is the end of part 1. I hope you enjoy reading the basics, and don't bored you out.
