Beginners Guide to Forex

The Foreign Exchange market is also referred to as the "Forex" or "FX" market and is the largest financial market in the world, with a daily average turnover of more than US$1.5 trillion. Foreign Exchange is the simultaneous buying of one currency and selling of another. The world's currencies are on a floating exchange rate and are always traded in pairs, for example Euro/Dollar or Dollar/Yen.

 
FX trading is not centralized on an exchange, as are the stock and futures markets. The FX market is considered an Over the Counter (OTC) or 'Inter-bank' market, due to the fact that transactions are conducted between two counterparts over the telephone or via an electronic network.

 
The Forex market is called an Inter-bank market because it used to be dominated by the banks. This includes central banks, commercial banks, and investment banks. However, the percentage of other market participants is now rapidly growing, and includes large multinational corporations, global money managers, registered dealers, international money brokers, futures and options traders, and private speculators (also known as retail customers).

 
The Forex is a true 24-hour market. Trading begins each day first in Sydney, and then moves around the globe as the business day begins in each financial centre, first to Tokyo, then London, and New York. Unlike any other financial market, investors can respond to currency fluctuations caused by economic, social and geo-political events as they occur – by day or night.

DEMO ACCOUNT TRADING

Before starting to trade the Forex, a complete beginner should always open a “demo” account with a broker (this is a free service provided by most brokers) to practice and learn.

Often, everything sounds and looks much more difficult than it actually is (except for making money, which can be much more difficult than it looks). By using a demo account one can learn to place trades, make stop-loss and limit orders and generally get a feel for the market without putting any real money at risk.

If you are completely new to Forex trading, open a demo account and simply “play” with it. Practice making trades in various currency pairings. Open and close trades and make various orders. Don’t worry about trading as if you were trying to achieve a profit. This exercise is purely to allow you to understand how the trading platform works and for you to see the effect of leverage working (profits and losses can mount up quickly). Also begin to study the free charts that come with your demo account so that you can begin to understand how price is represented by the charts in many different time frames.

Once you feel familiar with everything, open a new demo account and this time start to trade with it as if the virtual money was REAL. Your task is to make “virtual” profit. All traders make winning trades and losing trades. The trick to success in trading is two fold. Make more winning trades than losing trades and always to make more money on a winning trade than you lose on a losing trade.

This is where THE AMAZING STEALTH FOREX SYSTEM can help you. It is designed to help you make more winning trades whilst ensuring that the amount of money that you lose on a losing trade is kept to an absolute minimum.

After trading on a demo account, you may feel confident enough to start trading your own real money. Now you will need to fund a “live” account. It is often wise to consider starting off with a mini account. This will allow you to trade with small amounts of YOUR money and will let you get a feel for the emotional difference between trading with “virtual” money and YOUR OWN REAL MONEY.

Trading takes a good deal of discipline. Many traders fail to make money, not because the system that they use is at fault, but more often it is because they lack the discipline to rigorously stick to their system.

It is possible to make very large sums of money trading the Forex, but it is also possible to lose some or all of your investment.

NEVER FUND AN ACCOUNT WITH MONEY THAT IF LOST, WOULD CAUSE YOU FINANCIAL COMPLICATIONS.

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