How To Trade Forex?
Posted in: Money, money making ideas
After my last post , I received load of emails from people who actually wanted to start something. 80% of their main problem was lack of money to start any business.
Anyway, I use lot of methods to ensure I save at least RS 150,000/= in a Fixed deposit every month. Most of them need much planning , an average amount of capital and lot of hard work. I was thinking an easy and fast way for my blog readers to start building up some capital.
While I was at it , I followed a quick tip I received from my friend Gerad on msn and made 2 fast transactions on my forex account. Within 45 minutes I managed to made a profit of $190. That is for 2 $50 transactions I made on my account.
I was so happy for 2 reasons. Firstly, It was offered to me in a plate. I didn’t have to do any researches , No trend analysis, all i did was following my friend’s lead.
And secondly , I realized this could be it. An easy and fast way to build up some capital for my blog readers. And I must tell you,as with any kind of investing program you will not get profits all the time.
But the good thing with forex is you can reduce the losses , Win more by engage in correct strategies. Following right people , reading forex websites before doing a transaction , not putting all your eggs in one basket ,You can actually feel like you are virtually winning all the time. (Because you can reduce your losses in forex by following the correct strategies.)
Update : as at November 04th 2008: My average monthly Forex income has reached the $1000 mark.
This is a screen shot of my etoro trading account I took while updating this post. You can trade with $50 lots although I did otherwise.
I will give you a brief idea about FOREX before proceeding with the real thing.
What is FOREX?
The Foreign Exchange market, also referred to as the “FOREX” or “Forex” or “Retail forex” or “FX” or just “Spot” is the largest financial market in the world, with a volume of over $3 trillion a day. If you compare that to the $25 billion a day volume that the New York Stock Exchange trades,(I can’t even mention colombo stock exchange here.) you can easily see how enormous the Foreign Exchange really is. It actually equates to more than three times the total amount of the stocks and futures markets combined! Forex rocks!
What is traded on the Foreign Exchange?
The simple answer is money. Forex trading is the simultaneous buying of one currency and the selling of another. Currencies are traded through a broker or dealer, and are traded in pairs; for example the Euro dollar and the US dollar (EUR/USD) or the British pound and the Japanese Yen (GBP/JPY).
Because you’re not buying anything physical, this kind of trading can be confusing. Think of buying a currency as buying a share in a particular country. When you buy, say, Japanese Yen, you are in effect buying a share in the Japanese economy, as the price of the currency is a direct reflection of what the market thinks about the current and future health of the Japanese economy.
Why Trade Foreign Currencies?
No commissions.
No middlemen.
Low transaction costs.
A 24-hour market.
No one can corner the market.
High Liquidity.
Free “Demo” Accounts, News, Charts, and Analysis.
I do not want to bore you with too much information. I think this is enough for you to start, because “etoro forex trading” is giving you a free Demo account with trial money of $2000.(You cannot withdraw until You start a real trade account with a initial deposit of $50.) You can learn while you are demo trading with etoro trial forex trading interface.
So first,
Go and open an account at The Innovative Forex Platform – Download for FREE!
(There are thousands of other forex trading platforms but I trust Etoro simply because I have done over 3 lacks worth transactions with them without even a slightest problem.
Then use your forex trading demo account and start trading. etoro have a very simple interface. Believe me you will learn how to trade in 20 minutes.
You are good to go now, Join the FOREX scene now!!! & Kick some asses….
As always if you have any questions, Shoot them in the comments field. And if you like this post and want to share with your friends please use the “sharethis ” button at the bottom. After all, Do not be too greedy. When you find valuable information on internet it is always good to share it with your friends. :-)
Happy Trading. Post your profits here.
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hi,
I just joined and opened a trial account. After reading few forex signaling websites I made a tranascyion of $50. (Trial account.) I am in $12 profit now. Thanks a lot for introducing this.After 2-3 days i am going to do this seriously.I found some great tutorials on forex from google too.
Wish you all the best.Nice effort.
i knew you will come up with something good when there were no new posts for the last 1 1/2 days. Just subscribed to your blog and if you add a google search bar somewhere in the page i dont even mind adding this as my homepage.One of the best site i have seen and no competition to declare srilanka’s no 1 blog.
i have been trading for the past 12 months or so.And made quite a lot due to the dollar value going down. I bought euros and GPB against dollar and most times it worked.Other than etoro ,marketeva is also a good forex trading place.
Geez man what a tip! I’ve been curious about FOREX for a while now thanks so much for this info. Trial account here I come.
Man it is a relief to find a site with ultra-quality information!
hello everyone,Thank you all for nice comments . Keep in mind in the weekends forex do not operate. So when you log in to your trail accounts now it will only show you a demo based on historical data. Not live real stats.This will change once the market is open again on Monday. Then you can do trial trades with real live data feed.
hey man…thanx a lot for d info… me gonna try dis nw.. will keep u updated with the progress…!!!
For the naysayers who can’t bear when a srilankan doing something sucessfull,
Take a look at this…
http://en.wikipedia.org/wiki/Forex
The average daily trade in the global forex and related markets currently is over US$ 3 trillion.
That can’t be bad hah, Ad I said early, like every other investment there are risks involved. BUT NOT LIKE IN SHAREMARKET WE CAN REDUCE LOSS.
Why?
this statement is from wikipedia,
“As such, it has been referred to as the market closest to the ideal perfect competition”
Everybody with even slightest economy knowledge should understand what this means.”a great opportunity”. I have introduced a new way of increasing your net worth for the people who didn’t know about forex and how it should be done. Whether to do it or not is your decision. All i am saying is open your eyes. There is so much in the world that we are not aware of.If you are a pathetic pessimist Do not come here. There are load of pathetic blogs for you to participate :-(
this is awesome. Even NTB is now doing something to do with forex.But it requires more than Rs100,000 initially as far as i know. Here we can start from Rs 5000 and the platform is very clean and easy to understand as you suggested. My only problem is when i start to trade from real money, from where can I get information like you got from your friend. I do not know anyone who do forex trades. Actually this is the first time I even got to know that it is possible for regular people like us. Please give me a good solution as i am willing to try this out. I did a Google search and very exited after seeing the reports about forex trading.
Just to add to the author (and I know he hates Devil’s Advocates :) ):
1. When he says ‘…make at least 100$..” it doesnt mean making 100$ just once. In the forex markets a single currency pair (EUR/USD or GBP/USD)usually move somewhat worht of 75-100$ dollars in a DAY. So make 100$ and sustain it for a month.
2. Dont start small. The first time ever I did, I started with 300$, that looked big from Sri Lankan point of view, but what happens is that you run into losses that are irrecoverable. eg: Like I said before the currencies move about 75$ worth. Lets say this moved against you, then you have made a loss of about 25% of your investment. The human nature is to panic at a moment like this and sell off the position. But the reality is it may even fall down a bit more but most probably recover (whether it does or not is actually attached to the thrid point). After that initial attempt, I have had positions that were making about 200$ losses and have waited without closing them till the loss was only 25$ and sometimes even a profit. But like the author says, dont put everything you have into Forex trading. Always have a fall back plan.
3. Be informed. Most of the online trading systems provide news casts and analysis of what to buy and when to buy and when to let go. To answer Anil’s question, I dont know whether NTB does this. Although predictions in Forex can also go bloody wrong, it has worked for me 90% of the time.
Hopefully when I have time, Id write a bit more in my own blog, but I guess the wuthor here is more competent on that than me :)
Great intro to forex, its definately a market that i’d like to get into, but like many others getting together some capital is the main issue.
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dude brilliant post!
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Hi This is great! thanks for the information. Please do post any advice/tips you can give to novice traders. Thanks
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Thanks for this post, I was about to close my Forex account, and I’m sure will give it an other try after this post. I landed here from EntreCard.com and didn’t know that this could be as good as it is :)
Same happening here in India
Let see what happen
Is currency trading possible for small buyers? Also the rates we get for buying and selling are different and there are so many commissions. I think that makes short term trading impossible?
its a good idea to have a trial account to gain some experience and confidence!
great post as usually buddy im so glad i subscribed to your feed my friend.
@ IVS,
with leverage facility it can do wonders to your small amounts. I never trade more than a $50 lot at once. But I keep getting profits of over $30 for almost all trades I do. And few occasions it gave a boost of 10* due to high dollar volatility making me profits over $500.
All this started with a practice account with eToro and a week later a small $50 deposit.
Very nice intro to Forex. Check fxprices.net for forex news.
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Nice post. Quite an encouragement for those who will love to understand forex and maybe participate in forex trading. Cheers.
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how’s this broker spread during big news released?
I’ve been trading forex for about 2 years now and started out intitially the hard way, which led to loosing alot of money. I’m now doing very well using a robot. I very interested in the trial account and having a play. Just wish I’d seen this when i first started. JT.
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