Learn Forex (Foreign Currency) Trading ? Why should you learn forex ? I myself make a lot of money from forex. Forex is the largest money market in the world.
There is always an opportunity for you to make money. No matter how hard the competition is. The part I love most is you can
earn unlimited profit in forex.
LearnForexPro.com is founded by a young businessman at his early 30 years old
who has made hundred thousand of USD. Not bad for a start, isnt it ? Do not believe it ? Good. Indeed we should not easily believe all the things you find on internet and may have to prove it yourself.
Therefore, as a sense of gratitude LearnForexPro.com is dedicated to teach and as a step by step guide of how to
make money in forex, how forex (foreign exchange) online business can change your life, and at the same time help you to achieve financial freedom.
Our target is making you able to trade forex like a pro. First thing to do is read our forex trading basic, tutorial, and guide. Understand
it. Use our trading strategy and system (or you can use your own), get used to trade forex, and start making money !
Why you should consider forex (Currency) trading as your primary business ?
In forex trading, you decide when you want to work, how long you want to work, and how much money you want to make
(You are the Boss)
Forex trading requires limited equity and the yield could be unlimited
You can make money anywhere (as long as you are connected to internet) and anytime (forex market opens 24 hours a day, 5 days a week).
You can maximize your profit and limit your loss.
You will have a big probability to become financially freedom by trading forex. All you need to do
is read this website for forex tutorial and guide, find your own profitable trading system (or use ours) and repeat making profit
by your own trading system.
(I found a successful forex trader whose learned forex business by accident, recently he made a lot of money by trading forex,
about tens of thousand dollars a month ! and people starting to beg him to manage their money). And this could happen to you !
Start learning forex and make money now !
What do you need to start trading forex ?
A Personal Computer (and PDA, optional and preferable)
Stable and high speed internet connection
Limited equity (for example $1000)
Reliable, reputable and trusted online forex broker
You dont need an office, otherwise you can start your business from home or anywhere else. Even
when you are travelling, you still can make money. As simple as that !
What is Forex Trading ?
The foreign exchange (currency or forex or FX) market exists wherever one currency is traded for another. It is by far the
largest financial market in the world, and includes trading between large banks, central banks, currency speculators,
multinational corporations, governments, and other financial markets and institutions.
The average daily trade in the
global forex markets currently exceeds US$ 2 trillion. Retail traders (individuals) are a small fraction of this market and
may only participate indirectly through brokers or banks
What is traded in Forex Trading ?
The answer is Currency. Currencies are always traded in pairs, such as EUR/USD, GBP/USD, etc. Why ? Because
when you trade forex, you are exchanging 1 currency to another currency simultaneously (buying 1 currency and selling
the other at the same instance). You will gain from differences of traded currency price rates.
When is the time to trade forex ?
Forex can be traded 24 hours a day and 5 days a week. The main trading centers are in London, New York, Tokyo, and
Singapore, but banks throughout the world participate. The biggest foreign exchange trading centre is London, followed by New York and Tokyo.
Currency trading happens continuously throughout the day; as the
Asian trading session ends, the European session begins, followed by the US session and then back to the Asian session,
The following approximate market schedule is based on New York local time: japan forex markets open at 19:00 followed by
singapore and hong kong that open at 21:00. European markets open in frankfurt at 2:00, while london opens at 3:00.
New york forex markets open at 8:00. European markets close at 12:00 and australian markets start
again at 18:00.
What are commonly traded currency pairs (Majors) in forex trading ?
Majors are the most liquid and widely traded currency pairs in the world. Trades involving majors make up about 90% of
total Forex trading.
The Majors are: EUR/USD, GBP/USD, USD/JPY, USD/CHF, AUD/USD and USD/CAD.
GBP/USD is the only currency pair with its own name. It is known as "Cable" but there are also lots of abbreviations for
other currency pairs such as
What are the benefits of forex trading
Two way opportunities, that means you can earn profit from upward or downward price movement. For example
if you buy (go long) and the price moving upward, you will be in profit. and the otherway, if you if you sell (go short) and the price
moving downward, you will be in profit
Extreme liquidity of the market. Forex is the most liquid market in the world, and that means you
can buy or sell anytime you want
Long trading hours, Forex allows you to trade 24 hours a day and 5 days a week (except on weekends).
Leverage to amplify your profit, you can use a relative small quantity to trade bigger amount (usually from
1:50 up to 1:500) for example you have $100, without leverage your profit is only $0.01 but with 1:100 leverage your profit
will be $1. (leverage makes your profit 100 times bigger, this also applies to loss).
Free of comission, Relative Low Spread Cost, usually online forex brokers offer you comission free
trading, no brokerage fee, no exchange fee, and smaller trading transaction cost.
Flexible Trading Lots, you can trade rather standard lot (100K), mini lot (10K), or even micro lot (1K)
Automated / Robot Trading, some trading platform such as Metatrader enables automated trading
Factors affecting forex trading
Although exchange rates are affected by many factors, in the end, currency prices are a result of supply and demand forces.
Supply and demand factors are constantly shifting, and the price of one currency in relation to another shifts accordingly.
No other market encompasses (and distills) as much of what is going on in the world at any given time as foreign exchange.
Supply and demand for any given currency, and thus its value, are not influenced by any single element, but rather by several
. These elements generally fall into three categories:
These include economic policy, disseminated by government agencies and central banks, economic conditions, generally
revealed through economic reports, and other economic indicators.
Economic policy comprises government fiscal policy (budget/spending practices) and monetary policy (the means by which a
government's central bank influences the supply and "cost" of money, which is reflected by the level of interest rates).
Internal, regional, and international political conditions and events can have a profound effect on currency markets.
For instance, political upheaval and instability can have a negative impact on a nation's economy. The rise of a political
faction that is perceived to be fiscally responsible can have the opposite effect. Also, events in one country in a region
may spur positive or negative interest in a neighboring country and, in the process, affect its currency.
Market psychology and trader perceptions influence the foreign exchange market in a variety of ways:
Flights to quality: Unsettling international events can lead to a "flight to quality" with investors
seeking a "safe haven". There will be a greater demand, thus a higher price, for currencies perceived as stronger over
their relatively weaker counterparts.
Long-term trends: Currency markets often move in visible long-term trends. Although currencies do not have
an annual growing season like physical commodities, business cycles do make themselves felt. Cycle analysis looks at
longer-term price trends that may rise from economic or political trends.
"Buy the rumor, sell the fact": This market truism can apply to many currency situations. It is the tendency
for the price of a currency to reflect the impact of a particular action before it occurs and, when the anticipated event
comes to pass, react in exactly the opposite direction. This may also be referred to as a market being "oversold" or
"overbought". To buy the rumor or sell the fact can also be an example of the cognitive bias known as anchoring, when
investors focus too much on the relevance of outside events to currency prices.
Economic numbers: While economic numbers can certainly reflect economic policy, some reports and numbers
take on a talisman-like effect - the number itself becomes important to market psychology and may have an immediate impact
on short-term market moves. "What to watch" can change over time. In recent years, for example, money supply, employment,
trade balance figures and inflation numbers have all taken turns in the spotlight.
Technical trading considerations: As in other markets, the accumulated price movements in a currency pair such as EUR/USD can form patterns that may be recognized and utilized by traders for the purpose of entering and exiting the market, leading to short-term fluctuations in price. Many traders study price charts in order to identify such patterns