LEARN HOW TO TRADE AND MAKE MONEY PART 1(INTRODUCTION)

LEARN HOW TO TRADE AND MAKE MONEY PART 1(INTRODUCTION)

The following are the Table of content of what you would be learn.

*introduction to Forex*

*Forex Basics*

*How to make money trading Forex*

*the simple general trading strategy*

BRIEF INTRODUCTION ABOUT FOREX 

The foreign exchange market is a global decentralized or over-the-counter market for the trading of currencies. This market determines foreign exchange rates for every currency. It includes all aspects of buying, selling and exchanging currencies at current or determined prices.

  Just as it is in the Airport, we have money changers, these money changers would offer to exchange your money to another country currency if you are traveling out or exchange to your local currency if you are getting back from Abroad, example Mr Tayo was traveling to the united states from Nigeria, then he changed his Naira to the US dollars, since only the US dollar can be used buy/sell items in the US.

Again Mr Tayo returned from United states to Nigeria, but this time he came back with the united states dollars, which is useless over here in Nigeria, in other to make it useful, Mr Tayo needs to exchange his foreign currency which is the US dollars to his Local Nigerian Naira for spending.

What do you think... 

Did the money changers actually make money helping Mr Tayo to exchange his different country currencies?
Of course, yes is the answer

But how?
This is how the money changers made money from exchanging different country currencies.

*see illustration*

1USD = 360 naira

If the money changers are to sell dollars to Mr Tayo, they would sell it at high rate let say 380 naira per dollar, but if Mr Tayo brings in his dollar to the money changers, the changers would Buy Tayo's dollar at 340, this is just an example to show you how they make money,

they buy low price and sell at a higher price

By now you should start getting the sense of what Forex is about and how it works, if you have never had of it before.When money is been exchanged at a given price , this is known as trading, you are trading money.ut unlike the offline money changers you see in the airport, there are some factors that Differenciate Forex trading with the regular money changers,

At the offline money exchange platform, you need to have a lot of money to be a changer, this would not favor broke guys like us, in case we wish to join, but in Forex, with the help of *forex brokers* you can start trading with a very very little amount of money.

Again in forex you are not trading real money, instead you are trading digital currencies, but with live priceAnother differences between Forex trading and the offline money exchange is that, you are not buying or selling any asset, you never run out of Asset, your capital represent your Assets.See this example supposing i used all of my naira to buy dollars, few minutes later someone wants to buy naira from me, i would not be able to sell naira to that person because i have no nairas left with me, but as for Forex, you never run out any country currencies, your capital represents all country currencies, that means, you can continue be placing a buy order on US dollars as much as you can without running out of any other currency.

*More difference*

Offline money changers, would look for someone to buy their available currency, but as for the online digital forex exchange, you would never look for a customer since you are not buying or selling anything physical.

The market is always moving, without waiting for anyone

Last of the introduction*

In forex you cannot trade only on one currency, it must be a pair, what i mean is this, you can not trade only one Country currency let say USD, it must be together with another country currency, that Is example USD/CAD (US dollar VS Canadian dollar)

Next Forex Basics..


Posted by Admin.