How To Trade Forex?

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.

It is my duty to help all the readers since you are here for a reason.

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.

Latest Update
eToro has launched a super Bonus give away. Visit here to learn more about it.

Other must read posts.
Step by step guidance to your first forex trade.

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