What is Forex Trading? and how do you make profits?
Question:
Answer:
Forex trading is just like stock trading, only here you try to benefit from the change in the value of a currency in respect to other. I have started a blog where I am telling free information on a daily basis and am also posting trades I place along with the analysis on why I placed the trade. This all is free. You can check out there to gain more info -
http://the-forex-trading.blogspot.com...
http://en.wikipedia.org/wiki/forex...
go back to the children's section
Most people who play Forex lose money. See this Website:
Forex trading is trading in Foreign currencies.. e.g. using US Dollars to buy British Pounds, holding onto them for a certain amount of time.. then selling them again if / when the value has gone up to more than you paid for them.
For example, at time of writing this reply:
US $1.00 = £0.53 (British Pounds & Pence).
US $5000 = £2,659.10
Now, say the exchange rate changes so that it's now £0.50 to the Dollar..
It becomes
£2,659.10 = $5,318.20
So, you can make money.. but you REALLY, REALLY need to understand how it works (and alot of luck).
1) Foreign Exchange Trading (Currencies)
2) You sell $1.00 United States of America Dollar for $1.00 Euro and then you sell the Euro for $1.10 United States of America Dollar and you make $0.10
3) Forex is only Gambling if you buy and sell currencies based only on the name of the Currency like when you are betting on horses and you said hey that "faster than everybody" horse has a cool name I am going to bet on it. and you use the same "technique" and say I was last year on Japan on Vacation and it was a very cool country and that is why I am buying yen today or I hate Communism and that is why I am not buying Yuan.
On the other hand, if you analyze the countries and their economic factors, unemployemt, debt, interest rates and many more factors and you buy or sell a currency based on your calculations and analysis then you are not gambling anymore.
4) Yes.
Here is a FREE practice account:
fxcm.com
NOTE: if you don't have at least $1,000,000.00 in assets (Excluding all your residences and all your cars) I suggest you to stay away from Forex.
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