Many people are attracted towards Forex trading through false hype that this business does not need any particular knowledge. Actually, trading is profitable only if you are committed to learn constantly the skills to trade. You can take the help of FOREX trading forums.
Foreign exchange market or Forex is a decentralized global currency trading market that determines the virtual price of different currencies. International banks are the major participants. Currency trading occurs continuously all through the day. Asian, European and North American trade sessions begin and end consecutively, excluding weekend.
Forex market provides some unique advantages:
- 24 hour open – It is geographic dispersion that allows a continuous 24 hour trading opportunity because one market starts its operational activities, while others end. Trading begins from Sunday at 20:15 GMT (in Australia) until 22:00 GMT Friday (closes in New York) excluding weekends.
- High liquidity ratio – Assets which can be easily converted into cash swiftly without affecting its price, is termed as liquidity. In Forex it signifies that you can bet large amount on foreign exchange with minimum price movement.
- Leverage – Leverage is the capability to move more money than the actual amount present in the specific trader’s account. Leverage facility is provided by forex brokers. If you were offered a leverage of 50:1, it means you can practically trade for $50 for every $1 in your account. Thus you could control $50,000 trade using personal capital investment of $1000.
- Low commissions – Forex per-trade commission are made through ‘the spread’. Forex spread is the difference between the buying and selling price. Basically the buy price is slightly more than sell price at a set period, so you cannot make instant profit. However it allows the brokers and banks to make income without charging the traders on every transaction. For example: USD/EUR Bid – 1.3464 and Ask – 1.3468.
- Profit probability from fluctuations – Forex is a volatile market. It is a matter of chance, if you see that a currency pair’s value is going to increase, then buy it and go long. Alternatively, if you view that there will be fall sell it and go short.
If you are a fresher to the foreign exchange concept you can visit forex forums. It is the best way to locate similar minded traders making an attempt to thrive in the forex market. Group discussions give you new ways to clearly look at things. You do not feel lonely in what you do.
Benefits of foreign exchange forum
- Hear about experiences – Hanging around forum, provides you to hear the ideas of successful traders having experience under their belts. This can help you to gain knowledge about many things without experiencing them practically. The fact is that experience has no substitute but sometimes it seems valuable to learn from the ones, who are already familiar with it.
- Learn strategies – On forum there are always discussion regarding some new strategy that is created by someone or found elsewhere. It doesn’t matter but you get to learn new methods and do not have to try them out spending your own money.
- Get Feedback on your trading method – In case you have a strategy planned and want to use it, other traders on the forum will help you out in pointing the advantages and pitfalls that you never thought.
- Rumors & news – Rumors are always not true but impact the market environment. Forums are not always liable for starting them but they typically finish up there. Regular visit on forums allows you to keep tabs on rumors and even news you may have overlooked.
Forex trading is challenging and risky. It needs testing of strategy or personal decision. To learn forex environment you will have to commit yourself or more easily take help from forums.
These are training grounds that help you to share and learn from the positive and negative trading experiences. Sometimes the discussions are heated because two traders disagree on analysis but this kind of strong-willed debate will improve your reasoning impartially.