Forex Currency Trading For Beginners

The currency trading or foreign exchange (FOREX) market is the biggest and the fastest growing market on earth. More than 2.5 trillion dollars is “sold” every day, giving turnover rate manifold times greater than the NASDAQ daily turnover. Markets are places to buy, sell, and trade goods; the same is true with trading FOREX. The FOREX goods (or merchandise) just happen to be the currencies of various countries. For example, you buy Euro, paying with US dollars, or you sell Japanese Yens for Canadian dollars. That's really all there is to this entire market. The objective of FOREX currency trading for beginners is actually very simple and obvious: buy a currency cheap and sell it for more than you paid! The profit is generated from the fluctuations (changes) in the currency exchange market. Coupled with technical analysis tools such as candlesticks, stunning profits are possible. Why use candlestick trading tactics? This method, with all of its signals and analyses, can help even the newest investor see great gains with FOREX currency trading for beginners.

Once you learn FOREX trading, the nice thing about the FOREX market is that you are able to leverage your investment at a rate as high as 200 to 1. This is called “marginal trading”. Marginal trading is simply the term used for trading with borrowed capital. It is appealing because of the fact that in FOREX, investments can be made without a real money supply. This allows investors to invest much more money with fewer money transfer costs, and open bigger positions with a much smaller amount of actual capital. Thus, one can conduct relatively large transactions, very quickly and cheaply, with a small amount of initial capital. This can become a strong part of any investor’s long term investing plan. Marginal trading in an exchange market is quantified in lots. The term "lot" refers to approximately $100,000, an amount which can be obtained by putting up as little as 0.5% or $500. In virtually every time zone in the world, there are currency dealers who are able to quote rates and exchange currency literally 24 hours a day. These dealers, in many cases, offer credit lines to investors, which makes the ability to participate in marginal trading possible for the smaller investor.

FOREX currency trading for beginners is incredibly rewarding, and it can evolve into one of the most potentially profitable types of investment skills available. There are significant risks, but the ability to participate in marginal trading on FOREX means that potential profits are enormous relative to initial capital investments. This, coupled with the knowledge and experience of a method such as candlestick chart analysis, provides the opportunity for impressive gains. Another benefit of FOREX is that its tremendous volume prevents almost all attempts by others to influence the market for their own gain. It is possible to feel confident that each investment made has the same potential for success. Although investing in FOREX as a short term practice requires diligent research, investors can use there own ability, paired with a technical analysis tool such as Japanese Candlesticks, to analyze the daily fluctuations in the market and make intelligent decisions for each transaction. FOREX currency trading for beginners is not for everyone, but it is for the investor who is ready to step forward in an effort to make profits that are the dreams and envies of those nearby.



Source: http://www.candlestickforum.com/blogs/2006/09/forex-currency-trading-for-beginners.html