Forex is an abbreviated form of the term Foreign Exchange, or simply currency. Forex is a market where cash is sold and bought freely. FOREX is a huge market with trillions dollars turnover a day and the largest investors are banks, hedge funds, investment companies and so on.
Trading Foreign Exchange currency in the global Forex trading system market can make you money. Trading forex and currencies has become a popular choice for day traders with the introduction of online forex trading platforms and brokers to the internet during the 1990’s. Trading occurs over the telephone and through computer terminals at thousands of established locations, as well as within home-based trading businesses worldwide. Trading in the foreign exchange market is based upon the economies of the countries of which the currency is being traded. As the industrial market place and arguably the defining centre of the world, the dollar of the United States is used by far the most in Forex transactions.
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Forex
From the contraction of the words Foreign Exchange, Forex is the nickname given to the universal exchange market, where currencies are traded against each other, exchange rates that vary continuously.

Economic Importance
This global market, which is essentially interchange is the second market of the world in terms of overall volume, behind the interest rates. It is nevertheless the most concentrated and the first for the liquidity of the most treaties, such as the euro / dollar.

To give an idea of liquidity in circulation, the daily volume of trade in 2004, 1 900 billion U.S. dollar, namely:
600 billion in spot transactions and 1 300 billion in futures almost solely in transactions over the counter, according to the three-year study of the Bank for International Settlements (BIS).

Transaction volume, were 53% between banks;
33% between a bank and a fund manager or a non-bank financial institutions;
and finally to 14% between a bank and a non-financial.
In every major bank, the operators (the traders) are the 3 × 8, though generally in different locations. A team based in Asia or Australia succeeds another located in Europe and a third located in North America, and so on.

However, despite the global nature and the release schedule between continents, a large (31% of total volume, according to the BIS) of market activity is still physically located in London.

In its latest triennial review, the BIS (Bank of International Settlements) has shown that an increasing number of individuals choose to invest in the Forex. Although they still represent a very small minority of transactions and volumes, a dedicated private investors has grown in parallel. Simply record the number of trading platform available to them on the internet as well as tools for real-time information once reserved for professional traders in the rooms. Now, the active trader of foreign exchange market can invest minimum amounts and due to the existence of leverage-trader in almost (!) Similar to those of the professional trader. Information tools in real-time broadcast news and information forex fundamental (economic indicators) and offer individuals the possibility of trading conditions in real time.

The foreign exchange market has existed in its present form, called floating exchange rate regime since March 1973 and the abandonment of fixed exchange rates of various currencies
against the dollar standard Bretton Woods in 1944.

Treated products

Spot
Cash (called spot), the main parities were processed in 2004, according to BIS:

the euro / dollar – 28%
the dollar / yen – 17%
the sterling / dollar (cable said in English) – 14%
Despite the strong development of the euro, the dollar remains the dominant center, present in 89% of transactions (37% against the euro, 20% for the yen and 17% for the pound sterling, all on a total of 200% since each transaction involves two currencies). For a non-European currency XXX, a transaction between the euro and the currency is usually split into a EUR / USD and USD / XXX.

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Consider the dangers of forex (Warning),Do not invest money that you can not afford to lose.

Have a minimum of knowledge. (Forex Training), (Books on Trading):
Getting Started on Forex without knowledge, without training comes to play at the Casino and risk losing its entire capital. Trading rules are not complex, but one should know.

Develop strategies (Trading Rules by William Delbert Gann) (Dow Theory):
Using a demo account to develop a strategy and find your own style of trading, depending on your ability to manage stress, you choose to make the trading day by engaging a larger portion of your capital over a short or swing trading for the medium and long term. Traders winners that they will provide if the market behaves in a particular way while the losers are trying to predict what the market.

Always be informed (Economic Calendar):
The economic statistics may have a strong influence on the currency markets, stay alert to figures such as the unemployment rate, decisions on interest rates, gross domestic product, industrial production price index consumption, retail sales etc. ..

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When I first started trading, I often wondered what’s the best forex trading platform? After all, I remember seeing these thousand dollar trading platforms being promoted both online as well as in TV commercials. They really made it seem like you could never be successful trading unless you had this magical piece of software.

The ads would be very glossy, and it showed that the platform had hundreds, if not thousands of bells and whistles at its disposal. When you are a new trader, how could you not be impressed by that kind of stuff? But as you get more experienced in trading, the truth really starts to become clear, which is that none of that stuff is actually necessary.

This is why so many people struggle with forex trading . They are tricked into thinking that all these gadgets actually provide some kind of insight to the market. Nothing could be further from the truth.

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If you want to learn Forex trading you can, it’s a totally learned skill but you need to aware of the 3 Forex trading mistakes enclosed and avoid them – there easy to avoid so lets take a look at them.

These mistakes are in no order of importance, there all important.

1. Trusting Forex Robots and Expert Advisors.

If you think you will get rich with one of the above systems for a hundred dollars or so think again – if these systems made money, then a lot more traders would win. The fact is these systems, always lose money but the naïve or greedy trader will continue too buy them.

If you want to make money in any venture in life, you need to learn skills. You need to do your homework and get confidence in what you’re doing, that’s the way to success in Forex trading and always has been.

2. You Need different Skills in Forex Trading

Forex trading is simple and you only need a simple system to win – but many traders make the following errors which are rooted in their mindset, regarding normal behaviour in everyday society.

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If there is one thing I can change about the forex community, it would have to be the fact that seemingly every trader in the world is looking for the infamous holy grail. I really wish traders grew out of this mindset. It’s rather ridiculous when you think about it.

People think that there is something out there that will NEVER lose and you could become rich overnight just by trading it. Let me put an end to this right now. THERE IS NO HOLY GRAIL!!!

Sorry I didn’t meant to shout. But sometimes I get so frustrated with traders. They somehow feel like there is something that they can just slap on their charts that will unlock the key to the greatest secrets of technical trading. It’s absurd.

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The Choice of most novice investors when they start trading is a so called Forex Expert Advisor but instead of making a great income with no effort as the sale copy claims, they see there equity wiped out and the reason is simple and enclosed in this article.

The claims make by these systems is you are going to get a track record of gains which would make the true trading greats like Warren buffet, look average and all you pay is a couple of hundred dollars or less – it seems to good to true and it is.

These systems never present a track record of gains which have been verified by an independent source; you just get figures from the vendor or a meaningless, back tests across back data, knowing the closing prices ( not exactly hard!) and that doesn’t inspire confidence.

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Equity traders have been glamorized by the media. Most people think of movies like “Wall Street” when they think of stocks and, while that may have been a part of it in the 80s, most equity traders are simply brokers that sit in an office anywhere from New York to San Diego and do more business on the phone than on the floor of a stock exchange. No whistles, no bells, just hard work and communication.

Equity trades, simply put, are just stocks in regular companies that represent a share of ownership in the business. No fancy derivatives or options trading, just a basic slice of a company. An equity trader must know and understand these companies to make educated choices and usually tends to specialize in a few different sectors (like banking, pharmaceuticals or technology) in order to diversify their clients. It’s best to know a little bit about a whole lot of different areas, but that takes wisdom and experience to achieve. It doesn’t just happen overnight for an equity trader.

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An impressive 30% of all traders are currently using the best automated forex trade software to put themselves on the same level as professional traders who have been doing it for years. One program in particular has been recommended for beginning traders and those without much experience as it boasts the greatest winning rate of any trading system on the market today. So here is the review and everything you need to know about the best automated forex program.

FAP Turbo has been receiving praise from critics and users alike. For those who are not familiar with this program, basically this is an automated trade program which means that rather than you initiating the trades, it steps in and places trades on your behalf. It both makes use of mathematical algorithms to know when and what to trade effectively, as well as also following trades which it places for you to ensure that you stay on the winning side.

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There are many ways to make money but all successful traders know that if you want to win, you need to protect what you have; successful Forex trading is built on strong money management.

When dealing with leverage, you must make it work for you and that means cutting your losses and running your profits. All the great football teams have great defense and they know if they don’t concede points, there offense will get the chances to win the game and it’s the same in Forex.

Lose 50% and you have to make 100%, just to break even and the moral is:

If you lose money, you have to work even harder to get it back so let’s look at how to keep your equity intact.

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