In this article, I will share some essential tips, knowledge, and strategies of how to successfully engage in forex trading and start making money. Foreign exchange trading is the largest and the most liquid trading market in the world today. There are millions of people engaging in Forex trading across the globe every day. The requirements of becoming a Forex trader are simple; you only need capital and the willingness to take risks.
Many people claim that Forex trading is one of the best home businesses that an individual can engage in. However, it is also known that 7 out of 10 people fail in Forex trading. A majority of the people quit in less than three months down the line. Therefore, as you are likely to realize, Forex trading is not for the faint-hearted.
So, why do some people make money in forex trading while others end up losing terribly? The answer is simple. Those who make money in Forex trading have secrets that they guard with their lives. If you knew about these secrets, then you could make a few strides towards the right direction. Arm yourself with the right knowledge, and you will be good to go.
Unlike futures and stocks that trade via exchanges, Foreign Exchange Trading is conducted via market markers that comprise of major banks and both small and large brokerage firms that pitch their tents across the world. The market is open 24 hours for five days in a week. The Forex market remains closed over the weekend and starts again at the beginning of a new week.
Acquiring Forex trading Knowledge
As I noted earlier, a huge number of people engage in Forex Trading, but a majority of them end up failing. The reason for most people’s failure is due to lack of adequate knowledge on Forex Trading. You can arm yourself with the necessary knowledge by reading notes from experts and watching resourceful online videos on how to trade.
Forex trading resources
Just like in any other business, you will need to have the right resources to succeed in Forex Trading. There are a variety of trading tools that can help you to achieve your objectives. In most cases, you will consider hiring a professional trader who trades on your behalf. You might also need to acquire a online trading platform that allows you to trade seamlessly.
Forex Trading times
Knowing the best time to engage in Forex Trading is an essential component of efficient and effective Forex Trading. Forex trading opens around the clock during the trading week. However, just because the market is open 24 hours a day does not mean that every hour is money making an hour.
Trading gurus make money in Forex trading when the markets are volatile and moving. Little money is made when the market is calm and relatively quiet. To make good money in Forex trading, you have to know when the markets are active and volatile as they will guide you in marking your entries and exits from the markets.
The London and the Newyork sessions are the two most active trading sessions that offer the best trading environment. The Asian trading session, on the other hand, is less volatile and often calm and thus less likely to offer the best environment for traders to make money.
There are three distinct trading sessions in the world. The first one starts in Australia and Asia, it then moves to Europe and then closes every day in Newyork. The Asian trading session at 6:00 pm EST and closes at 4:00 am EST. The London session starts at 3:00 am EST and closes at 12:00 pm EST. The Newyork trading session begins at 8:00 am EST and closes at 5:00 pm EST.
Factors affecting Forex exchange trading
Some factors affect Forex trading. Some of these factors include GDP, trade reports, international trade, and unemployment amongst others. A slight change in these factors can significantly affect the value of a particular currency. You, therefore, need to consider such and many more factors before trading.