Skip to main content

Forex Trading For Beginners - A Guide

FOREX TRADING FOR BEGINNERS - Where to Start?

As good a place as any for a FOREX beginner is to start with is gaining a good understanding of the lay of the Currency Trading land. As tempting as it is to jump into this massive money trading market, your wallet - and you - will be happier by tempering your enthusiasm and easing your way into this massive trading arena.

Not to say you won't set the Currency Trading world on fire and impress your friends and family with your first million made overnight...but....let's concentrate on learning a little first...then on making your first few PIPs.

Three areas that are valuable and helpful to learn about when starting out in FOREX trading are:

- FOREX History

- Major Foreign Exchange Market Participants

- Currency Pairs and Currency Codes

FOREX HISTORY

Learning about FOREX History and how it has shaped the trading industry we know and trade in today provides a good historical baseline and perspective.

There are several events that occurred of note in FOREX history, starting with the early Gold Standard days.

The conclusion of WWII brought the then-new Bretton Woods Agreement and System to the forefront, where it remained until the early part of the 1970's, when the gold standard finally ended.

That end ushered in floating foreign exchange rates which were adopted by the global financial currency trading community, and which form the base of today's foreign exchange trading markets and their respective exchange rates.

THE MAJOR FOREX PLAYERS

As a member of the FOREX trading for beginners "club" it's also a good idea to learn more about the major players in FOREX... called foreign exchange market participants, of which you are now, or will likely become one soon, once you start trading the FOREX.

The major players include our, and other Foreign Country Governments and the Central Banks, the Interbank market, companies that use the Foreign Exchange markets for commercial/financial hedging purposes, and speculators - which include both large hedge funds, and the individual FOREX speculator like you.

CURRENCY PAIR and CURRENCY CODES

Speaking of trading foreign exchange currencies, how do you know what you are trading with all those weird looking 3-letter FOREX currency code abbreviations you see?

Well, every foreign currency has its own unique code, and because you are in the forex for beginners club, we will introduce you to Forex Currency Pairs and their associated codes.

There are several main currency pairs that are more heavily traded than the rest, and they are called major pairs. These include the U.S. Dollar and the Euro among other main global currencies.




Source by Tom Leous

Popular posts from this blog

The Basics of Cryptocurrency and the Way It Works

In the times that we're living in, technology has made unbelievable advancement as compared to any time in the past. This evolution has redefined the life of man on almost every aspect. In fact, this evolution is an ongoing process and thus, human life on earth is improving constantly day in and day out. One of the latest inclusions in this aspect is cryptocurrencies.Cryptocurrency is nothing but digital currency, which has been designed to impose security and anonymity in online monetary transactions. It uses cryptographic encryption to both generate currency and verify transactions. The new coins are created by a process called mining, whereas the transactions are recorded in a public ledger, which is called the Transaction Block Chain.Little backtrackEvolution of cryptocurrency is mainly attributed to the virtual world of the web and involves the procedure of transforming legible information into a code, which is almost uncrackable. Thus, it becomes easier to track purchases an…

Forex MegaDroid - The Trading Robot That Applies Two Trading Strategies

It is important for novice traders to gain the basic knowledge of Forex trading at the very beginning of their attempts. After you get the rough ideas of what those charts, tables and axis mean, then you should study in details about which trading style suits you the most. Currency trading involves completely different styles. People should opt for their own strategies, but basically there are two primary types of analysis: the technical and the fundamental. A few traders would choose one of the two, some will combine them, others just follow what the robot tells them. Forex Megadroid belongs one of the few automated programs that applies both trading strategies. Forex traders who choose to use technical analysis always base their analyzes on the currency market trend. They read charts and recognize the common patterns for the price movement. Different traders may employ various reporting system to make the analysis easy to read or update. For the users of technical analys…

Virtual Currency Games

Every little boy's (and many grown men's) dream of making a living by playing video games is edging closer to reality. The recent release of HunterCoin and the in-development VoidSpace, games which reward players in digital currency rather than virtual princesses or gold stars point towards a future where one's ranking on a scoreboard could be rewarded in dollars, and sterling, euros and yen.The story of the millionaire (virtual) real estate agent... Digital currencies have been slowly gaining in maturity both in terms of their functionality and the financial infrastructure that enables them to be used as a credible alternative to non-virtual fiat currency. Though Bitcoin, the 1st and most well known of the crypto-currencies was created in 2009 there have been forms of virtual currencies used in video games for more than 15 years. 1997's Ultima Online was the first notable attempt to incorporate a large scale virtual economy in a game. Players could collect gold coins …