Why should you learn forex?

There is a lot of hype surrounding the forex market, but even when you look beyond the glossy marketing materials and ‘inflated promises’ the forex market is a fantastic opportunity for people with limited or no trading experience/skill and a small budget to make healthy profits.

There are thousands of ordinary people making $$$$$”s by trading forex….but there are also thousands of people losing money. These are the people that don’t take the time to ‘learn forex‘ properly. They jump straight in and start trading. This is a mistake, if you don’t do your research and learn forex correctly you’ll get burnt.

Learn Forex – The Essentials

Forex trading has is essentially trading on the rise and fall of foreign currencies in the foreign exchange market. Over $2.1 trillion US dollars of currency trades take place on a DAILY basis – its a truly massive market, with massive potential for savvy traders. Forex trading takes place 5 days a week, 24 hours a day and is a global marketplace.

When you learn forex you’ll see that as a forex trader you choose a pair of currencies that you think will change in value against each other. You make a trade on which currency will become stronger or weaker and be how much. For example lets say you buy $1000 Euros for $1200 USD in the morning, and in the evening, this changes to be $1000 Euros for $1300 US, then you can sell back your Euros and make a $100 profit.

The Secret Behind Forex – The Risk Level

Forex would just be another market, with a 3-10% return on investment every year, if it did not have that special trick: You leverage your money with broker’s ones and the cash you invest is simply a guarantee.

What does this mean? Let’s say you have $1000. You can choose to play with a risk level of 1, and thus playing with $1000, which is really boring. This means that if you buy Euros over USD, and Euros gain 5%, you will do $50.

Now you can increase you risk level, up to 1000! This means that with a risk level of 100 per example, if you have $1000, you invest in reality $100,000. The broker will buy for you 100,000$ worth of Euros. If you win, no problem, your investment is kept. If you loose, as soon as you have lost $1000 over your $100,000 investmen

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