Forex Trading: Training for Beginners  -  Photo credit: twitter.com  Edition by Amber255 via Bitlanders.com

Greetings! Does the word Forex trading have a meaning to you? I guess, yes. Those, who are interested in making extra money online, of course, have heard or even are involved in Forex trading. I have also been involved. Time ago, I spent a lot of time learning the basics of Forex trading and even had a mentor - a successful Forex trader. Did I earn money? Yes, I did. I had some losses and some profit. We traded in one platform that is not just a Forex trading alone, it also has an affiliate program. Having learned the basics of Forex trading, I want to start Forex trading beginners guide for those who are willing to start earning some extra money in this field.  

When you first hear the word Forex, it's may hard to understand what all this means. Well, it's not rocket science, and every one of us has faced a currency market. So, it should not be very hard to understand what a Forex market means. But let's talk about everything from the beginning.

Forex trading guide - Photo credit: longnguyen48.blogspot.com

Even the school children are able to understand the essence of trading: to buy cheaper and to sell more expensive. The exchange rate of the currency fluctuates all the time, therefore, you buy a certain amount of currency, and when its value increases in relation to another currency, you sell it and get a profit. 

All of you probably know that going abroad, you need to go to the bank and exchange the money. To buy anything there, you do need a currency of the country you are traveling to. In each bank, you can see a table with different currencies and their courses. For example, for one euro you get $1.1. When you exchange your local currency (for instance, the euro into US dollars), you already participate in Forex trading! 

Let's give you an example of how to make money by currency fluctuations.

Suppose you have a buddy Peter, who was planning to travel to the United States. He got everything ready and even exchanged euros for dollars at a rate of 1:1.1 (for 1,000 Euros bought $1,100). But the disaster happened to Peter - he got into an accident and could not go to the United States. At the time when Peter recovered after an accident, the US has increased taxes. The central bank also increased its interest rate. Due to these actions, the dollar value has increased. When Peter returned from the hospital, he decided to exchange the dollars back to the Euro. The dollar has risen in price over the same period and was converted into Euros at the ratio of 1 to 1 (one US dollar per Euro). So Peter, having sold 1,100 dollars, has already received not 1000 Euros but 1100 Euros. Due to currency fluctuations, Peter earned 100 Euros.

Credit: Amber255

Why is the price of currency fluctuating?

Forex market is nothing but a commodity. Like the price of any other item, it depends on the supply and demand of the currency. For example, if all the world's largest banks, states, and companies suddenly begin to sell pounds sterling, and those willing to buy them are few players, it's natural that the pound depreciates against other currencies.

Currency supply and demand depends on foreign exchange market operations conducted by Forex market participants. In the Forex market, the traders make money from currency fluctuations. The purpose of my lessons is to teach you to successfully trade in the currency market.

What Is Forex? SIMPLIFIED  - Video credit: arsalanjanwun via Youtube.com

What is Forex?

The basics of the Forex cannot do without explaining what the forex is. Forex is an interbank currencies exchange market. The term Forex market (FX-market) is commonly used.

It's the only global market to work around the clock for five days a week. Fast cash flow, low fees for executing transactions, high liquidity make Forex one of the most attractive places to invest. The purpose of the speculative Forex market is to buy or sell currency in order to obtain a profit from currencies rate changes.

Daily Forex market is steadily increasing:

In 1977 - 5 billion dollars;
In 1987 - 600 billion dollars;
In 1992 - 1 trillion. dollars;
In 1997 - 1.2 trillion. dollars;
In 2000 - 1.5 trillion. dollars;
In 2005-2006, the daily turnover of the Forex market from various sources amounted to 2 to 4 trillion dollars.
Now, the Forex market generates about 5 trillion US Dollars (USD)daily.

 Forex Market  -  Photo credit: dau-tu-forexy.blogspot.com

There are no precise data as it is an over-the-counter market and nobody has to register and publish transaction sizes.

So, Forex daily turnover reaches 5.3 trillion dollars. Compare it with other markets and stock exchanges. The largest stock market in the world is the New York Stock Exchange (NYSE). Its daily turnover amounts to 26.2 billion.

How is Forex Different From Investments in Securities?

Unlike the stock market, there are considerably less random fluctuations in the Forex market, which are caused by speculation by individual people, financial institutions or state structures:

• The gigantic volume of transactions in the EUR /USD currency pair does not allow a financial group to drop or raise a course 2 or 3 times;
• Forex is one of the most profitable (but also riskier) investment instruments;
• All niches that can quickly bring profit without competition are already occupied, and the trader's chair always remains free.

Foreign Exchange Market  -  Photo credit: freeimages.com

The ability to save your assets incognito: Forex market does not have a single center and trade is done online or by other means of communication, therefore:

• Many speculators can remain anonymous;
• The competitors will never be able to take away this business;
• You choose your work time yourself;
• There is no competition among speculators in this business;
• You can live and work anywhere in the world;
• Unlike any other entrepreneur, the speculator is not responsible for retaining employees and continually updating the production line (Forex is one of those unique cases where the most expensive thing in production is the business manager himself - the speculator).

The stability and dynamism of the Forex market relate to the constant need for currencies exchange in the world and financial institutions that bring stability and growth in this market.

Differences of Investments to Forex and Securities  -  Photo credit: vintagevalueinvesting.com

 Some of the Most Important Beginner's Steps Towards Getting Started

Day after day there is continuing discussion about Forex market between those who are interested in the currency - can you earn money here or not? Most, of course, are arguing those who heard about Forex only from rumors, those who tried but unfortunately unsuccessfully, and those who are responsible, rational, and don't give up.  As long as some traders only talk, more and more people are emerging, wanting to take real action, learn to trade, work, and achieve faster results.

So, if you decide you want to start trading currencies, you need to know how to get started, because the good start is half the work. What are some of the key few steps for a newcomer to succeed?

How to make money in the Forex market? - Video credit: Tickmill via Youtube.com

Everything starts with the right attitude

Before starting Forex trading, just like starting any other business, if you want it to succeed, you must first answer yourself to the question of what you expect and how seriously you are ready for new, responsible, and risky activities.

Perhaps you've heard a popular opinion that everybody can trade. Theoretically, this is true. In today's high technology world, currency trading is technically affordable for everyone. However, not everyone can become the successful trader and live with money earned from the trading or at least earn regular extra cash. First and foremost, Forex is an investment and a responsible, consistent job. So now you have to convince yourself that the odds that this will soon become the main source of livelihood are practically nonexistent. And even if you invest a lot of money as an exceptional case, it's very likely that you without knowing how to control your capital will lose as fast as you invested.

While reading my new blog about Forex trading, please check Querlo Chat:

It's also important to know that the Forex market is not a fairy tale about the honey and milk rivers, where you do not need anything to do and with just a few buttons clicks the dollars fall on the palm of your hand. This is not a casino, which owners will only win if we lose and where we come to satisfy the need for adrenaline and gambling. 

So, the money does not come up here at once and in large amounts, and if this happens, it's usually, as a rule, they are coming back there as well.

It is also important to properly assess the risks before starting trading, as this type of activity is risky. You have to understand how much you risk, you need to understand what can happen with the money you will invest. You have to be ready for the losses that are virtually inevitable for every trader at the start of trading. 

Find out and be financially and morally ready to be able to burn your first account of the first Forex learning time. It is a part of your learning process, and each loss is your development. With time, working hard on a consistent strategy and managing capital and risk properly, losses are decreasing.

 Currencies Exchange  -  Photo credit: fiscalizate.wordpress.com

The best way to start Forex trading is simply to invest in your free money as an extra business and a hobby, and with time as an additional source of revenue. And only after a long learning time, full of achievements and losses, it is possible to live out of it, although not everyone does it.

But for those who persevere, responsibly and patiently learn and work with the right attitude in the currency market, Forex trading becomes an ideal business that provides independence, good income, free time, self-realization, and the ability to develop activities in any country of the world.

Don't ever make the mistake of believing that market success has to come to you fast. Trade small, stay in the game, persist, and eventually, you'll reach a satisfying level of proficiency. 
― Yvan Byeajee

Credit: goodreads.com

The Process of Preparation 

If you decide that you want to engage in personal trading of currencies, you have to do more than just have a right attitude but also prepare it in practice.

Collection of information and learn Forex trading

Independent learning and the collection of theoretical literature for beginners is not bad. However, according to the individual traders who have reached the highest heights in the Forex market, too much theoretical information at the beginning of the trade does not help but hinders. Why? Because it develops a different, not always correct attitude and many strategies circle in the head. It distracts from making a simple commercial decision.

 Learn Forex Trading  -  Photo credit: develogroup.ru

Therefore, saving your time and money, better subscribe to the Forex courses for beginners. Of course, it is important to choose the right teachers and the right courses, because not all of them will be equally useful and effective. While the free or very cheap Forex courses are popular, remember that no company will waste their time free of charge if it does not have the way to profit from one way or another. Therefore, if you want to get really valuable knowledge, choose paid courses, which are not led by theorists, but for practitioners.

Pay also attention to the curriculum - money in the foreign exchange market helps you to earn not a knowledge of terminology or dry theory, but the practice and a real sensation of how the entire process of the trade takes place, so choose those courses that you will have the opportunity to practice at least part of the time.

Foreign Exchange Market  -  Photo credit: twitter.com

The best and most rational choice for you is a personal marketing coach whose services will certainly not be cheap, but it will save you time and money.

Here is one simple example.

Ask the trader who has successfully traded currencies for a few years already, what he would have done otherwise at the beginning of his trade? It is likely that you will hear such an answer: I would better have paid that money I have lost during the first training period to a serious trader for teaching me not only the proper attitude to Forex trading but also for to learn proper management of the risk and capital, would learn to be ready for it psychologically and start generating stable long-term income.  Then I would have saved both the money and also a lot of my time. 

Credit: Amber255

The best always is to learn only from the best ones - they themselves have achieves more than others. 

On the Final Note

Like any investing, forex trading does not have any golden rules on how to get more profit than others. In order to profit, you will need not only to analyze the graphs but also to keep track of the currency market - central bank statements, various index changes, monetary and fiscal policies changes, etc.

If you are expecting Forex trading to be a venturesome, simple, and fun way to make money, then better go to the casino. There you will get a drink, have a party with your friends, and have a fun evening.

 Forex Trading, Currencies Exchange  -  Photo credit: twitter.com

And if you succeed in understanding the subtleties of Forex trading, you can earn decent profits in just a few hours a day. The Forex market is very convenient: you need a computer and internet only, it is possible to work at home, and you can be the owner of yourself.

I hope that this lecture has been useful to you and I hope that other lessons from my Forex tutorial will be useful too. I will continue my lessons on Forex trading, and in the next blog, you will get acquainted with how to manage risk and your capital. 

Risk Warning: Forex Trading is risky, and it may not fit for everyone who wants to invest. It may happen that you will lose the total amount you have invested. You should not invest more than you can lose. Before investing, make sure you understand all the risks associated with Forex Trading. 

Earn Extra Money in Forex Trading - Photo credit: kotseaudioclub.com

 I wish you success in whatever way of making extra money you will choose. 

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You can check my other blog about earning extra money:

1. Investing for Beginners: Easy Steps and Tips to Start Investing

2. First Steps To Starting An Online Store

3. How To Become Successful in Amazon e-Commerce Business

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