INTRODUCTION TO FOREX TRADING

A lot of people who have heard about forex trading or people trading currency online, well I will give you a brief explanation of what it is all about. Forex trading is the act of buying and selling different currency all over the world i.e. buying and selling of currencies like dollar, euro, pounds, yen etc.  unlike the stock market which involves you buying at a low price and selling at a high price only, in forex you can buy and sell at either directions which is what makes it the most profitable business in the money market and also the most risky business if necessary knowledge is not done before putting your money in the stock market.

For easier explanation, in Nigeria where people go to the black market to meet people to buy dollar or pounds in exchange of naira, what you are doing there is also forex trading but it is just that you are restricted to the amount of people they transact with but trading currencies online will make you do this business on the international level

About $4 trillion is traded on the forex market daily which makes it the largest money market in the world. Anybody can trade forex if necessary training has been passed through by such individual and the person has the money to start trading forex.

Long before this time, forex trading was strictly for the rich people, big commercial banks, companies and corporations who have a lot of money to invest in the market, but now for the sake of the retail broker forex trading is now available to everyone because of the access of leverage which gives one individual the ample opportunity to access large amount of money with just little money which is what most people are using now. People can now start trading forex with as little as $10 depending on the broker you are using to trade forex online.

Do not be fooled when people tell you to just start trading now without training, you must have gone through a series of training to know how to trade forex and also practice on your own for at least one month to see how well you doing demo trading. Then you can start trading forex with the real cash.

On a final note, forex trading is a long term course on its own as you will have to continue to study many material so if you are looking for a fast way, look for a mentor who is a successful trader and let him be the one to guide you to become a successful trader.

Till I come your way next time.