Earning Money From The Forex Market, Myth or Reality?
This article is a quick insight into trading currency on the internet from home. First of all we are going to look at what the forex market is and how to trade on the forex market. How to profit from trading currencies and manage a profitable account.
What is Trading Currency?
The buying and selling of currency pairs is what is known as the forex, FX or Foreign Exchange. The process of trading forex can be done from the comfort of your home with a high speed internet connection and a computer, in fact it can be done from anywhere in the world as long as you have access to a computer and the internet. Many people are now setting themselves up at home as independent forex traders and getting a slice of the tax free trillions that are traded on the forex market every day.
How To Profit from Currency Trading.
The countries currencies around the world are paired up into specific pairs e.g. GBP/USD or EUR/USD e.t.c. It is these currency pairs that fluctuate in price against each other. Today the USD might be worth $1.60 to the pound and tomorrow it might be worth $1.65 to the pound. In the forex market we trade on the last two decimal places so a fluctuation of a tenth of a penny would be worth whatever your stake is on that trade. If you stake 10 per point and the trade moves 10 points or 1p then you would make 100 profit.
To trade profitable is all about risk management and one must understand the profit/ loss of a trade how much profit is expected on a certain trade and how much is a possible loss. 5% of the traders balance should only be risked at any one time.
Always trade with a stop loss in place this is very important. Start by setting yourself a 30 point stop loss and a 30 point profit order. A stop loss means that if your trade goes the wrong way you will only lose what you have set your stop loss at and no more. if you do not set a stop loss then a computer generated stop loss will be generated for you which can be up to 200points. Do not be greedy and start by just taking 30 pips of a already developed trade that way you will limit your chance of reversals on your profits. - 23305
What is Trading Currency?
The buying and selling of currency pairs is what is known as the forex, FX or Foreign Exchange. The process of trading forex can be done from the comfort of your home with a high speed internet connection and a computer, in fact it can be done from anywhere in the world as long as you have access to a computer and the internet. Many people are now setting themselves up at home as independent forex traders and getting a slice of the tax free trillions that are traded on the forex market every day.
How To Profit from Currency Trading.
The countries currencies around the world are paired up into specific pairs e.g. GBP/USD or EUR/USD e.t.c. It is these currency pairs that fluctuate in price against each other. Today the USD might be worth $1.60 to the pound and tomorrow it might be worth $1.65 to the pound. In the forex market we trade on the last two decimal places so a fluctuation of a tenth of a penny would be worth whatever your stake is on that trade. If you stake 10 per point and the trade moves 10 points or 1p then you would make 100 profit.
To trade profitable is all about risk management and one must understand the profit/ loss of a trade how much profit is expected on a certain trade and how much is a possible loss. 5% of the traders balance should only be risked at any one time.
Always trade with a stop loss in place this is very important. Start by setting yourself a 30 point stop loss and a 30 point profit order. A stop loss means that if your trade goes the wrong way you will only lose what you have set your stop loss at and no more. if you do not set a stop loss then a computer generated stop loss will be generated for you which can be up to 200points. Do not be greedy and start by just taking 30 pips of a already developed trade that way you will limit your chance of reversals on your profits. - 23305
About the Author:
Adam Woods has been trading foreign currency for 3 years but never realised his true potential until he joined up with Colin Atkins at his exclusive online club Now Adam is trading full time from home and gaining the confidence to increase his target profit everyday. Come and see how this lucrative business can give you the opportunities you need to trade on the forex market from home
posted by Mr. Forex at
6:09 AM
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