24th May 2009
FOREX tutorial for beginners, part 1
Before you start reading this tutorial you should be aware that FOREX trading is not a sure way for money; it is risky and you might lose much or all of what you have invested. I am not, and neither is anyone else responsible for your actions. You should not use your money on trading unless you are prepared to lose the money. Of course it is possible to earn money and even be lucky to get money from trading; but it should not be a source for income before you really know what you are doing.
Now that I have the warning out of my system we can start talking a bit about FOREX. FOREX is really an acronym for FOReign EXchange; meaning you is trading currency. You buy into one currency; and sell it to another currency, with the overall goal to profit from your trading.
You are throughout the trading trying to buy currencies at a low price; and selling it off at a higher price. While trading on the FOREX market, you are mostly committing contracts; in contrast to the stock market where you buy a share of a company.
Let’s start with looking at the basic components of currency trading:
The currency pair -This is basically which currency you are selling, and which currency you are going to buy.
The principal amount -The amount of money currency involved in the deal
The rate – The agreed exchange rate between the two currencies.
Another important aspect of trading is time frame. You should be aware of how to use time frames both when looking for trading signals and when looking how long you should your keep the currency before selling again.
Time frame is an important aspect as you should think closely whether you want to do day trading or long term trading.
Trading is always made in pair; for example euro/us$.
There are many strategies to apply when doing trading; most short term trading is commonly used by pattern and technical analysis of the currency within given time frames. Many of the widely used strategies might be applied by manually or by automated software platforms.
Another important not to make: make sure you try with a trial account before doing any real trades with your money; it is important to know how to use the software and to know at least some of what to look for and what to do.
-Kentaki-
Before you start reading this tutorial you should be aware that FOREX trading is not a sure way for money; it is risky and you might lose much or all of what you have invested. I am not, and neither is anyone else responsible for your actions. You should not use your money on trading unless you are prepared to lose the money. Of course it is possible to earn money and even be lucky to get money from trading; but it should not be a source for income before you really know what you are doing.
Now that I have the warning out of my system we can start talking a bit about FOREX. FOREX is really an acronym for FOReign EXchange; meaning you is trading currency. You buy into one currency; and sell it to another currency, with the overall goal to profit from your trading.
You are throughout the trading trying to buy currencies at a low price; and selling it off at a higher price. While trading on the FOREX market, you are mostly committing contracts; in contrast to the stock market where you buy a share of a company.
Let’s start with looking at the basic components of currency trading:
The currency pair -This is basically which currency you are selling, and which currency you are going to buy.
The principal amount -The amount of money currency involved in the deal
The rate – The agreed exchange rate between the two currencies.
Another important aspect of trading is time frame. You should be aware of how to use time frames both when looking for trading signals and when looking how long you should your keep the currency before selling again.
Time frame is an important aspect as you should think closely whether you want to do day trading or long term trading.
Trading is always made in pair; for example euro/us$.
There are many strategies to apply when doing trading; most short term trading is commonly used by pattern and technical analysis of the currency within given time frames. Many of the widely used strategies might be applied by manually or by automated software platforms.
Another important not to make: make sure you try with a trial account before doing any real trades with your money; it is important to know how to use the software and to know at least some of what to look for and what to do.
-Kentaki-
Posted by Kentaki under 
Forex Tutorial for Beginners 
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