Money, Money, Money!

Filed under: Learn Forex Trading |

 

For those of you that don’t know (and forgive me if you are an advanced trader), the forex market, or the ‘foreign exchange’ market, as it is more formally known, is a money market. It is all about money, money, money. There are many currencies throughout the world, and when you go on holiday, you have to change your local currency to a foreign one. Most of you should know this. You are probably also aware that these exchange rates fluctuate. However, you probably are not aware of the extent of these fluctuations.

 

The forex market is a 24-hour market and exchange rates change by the second. They are constantly in flux and speculators take advantage of these price changes and try to make a profit by buying one currency and selling it when the price improves. If you do this with enough capital behind you, you can make vast sums of money. But you can also lose vast sums of money. It depends on your skill level.

 

I personally trade by using price action signals at significant areas of support and resistance on the longer-term charts, these being the 1-hour, 4-hour, and daily charts. If you would like to follow some of my trades, I do a regular daily trade analysis here at eforexsystemreviews.com. There are some complexities to forex trading, and it does help to have someone to talk you through it when you are a complete beginner. However, once you learn the ropes, the act of trading itself is really not that difficult. It is the psychological side of trading that is harder to come to terms with; because when it comes to ‘money, money, money’, nothing is ever simple – and our emotions run riot, which is strange really, as money is man made and does not really exist (other than being pieces of paper)!

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