Forex stands for the ‘foreign exchange’ market. So, what is forex? It’s the medium used to exchange one currency for another. Let me ask you something. Have you ever traveled to another country? Surely you’ve purchased a product from overseas on EBay? Maybe you simply needed to transfer money to an overseas bank account. If you answered yes to any of these, you would have needed to exchange currencies on the Foreign Exchange market to complete the transaction. Don’t worry, most of the technical stuff gets taken care of on the banks end, but essentially you’ve already traded on the Forex market. Go you!
If I ask colleges what is Forex, they generally think i’m talking about the stock markets. People believe Forex trading is dealing with centralized markets like the New York Stock Exchange (NYSE). People’s perception of the NYSE is that it’s the largest, and most powerful financial market place in the world. This means that’s where all the big money is right?, No, that’s incorrect. The Foreign Exchange market is the largest in the world. In fact, it’s about 200 times bigger than the New York Stock Exchange.
Overall, there is approx. 4 trillion dollars traded across the entire Forex market in a 24 hour trading day. Even if you combined all the stock, bond and equity markets together, you still wouldn’t come close to the total size of the Forex market. The Forex market is truly EPIC in comparison to any other financial market in the world. Next time someone asks you what is Forex, you will be able to distinguish the difference from the other more well known markets.
Forex trading has become exponentially popular since the implementation of electronic trading. That’s all thanks to the development of the internet. To get started with Forex trading, all you need is a basic computer setup with a reliable internet connection. Another great reason Forex trading has gone viral is because the Forex market gives you the freedom to trade from the comfort of your own home. Most people thrive to achieve the ‘full time forex trader’ milestone with the goal of becoming their own boss. But beware, it sounds very appealing but a lot of new traders experience Forex trading failure.
One positive note to starting your dream of trading Forex from home is you don’t need any special qualifications to be successful. No need for university degrees in economics or physics, advanced skills in maths. You don’t even need to be be in tune with the global financial news, or have your hands on the latest economic data. These are all common misconceptions. In fact, the high school drop out can be more successful with trading than say a doctor, dentist, professor or engineer. The market does not discriminate between IQ scores or your qualifications, it is an equal opportunity for all. But, that doesn’t mean it’s going to be easy. Forex trading is the biggest psychological challenge you will ever face in your life. You need to be headstrong and maintain realistic expectations of trading.
For a person to become a successful trader they must undertake an emotional journey that all other traders go through. The successful trader has a cool, calm & collected attitude with his/her emotions which are kept in check at all times. A lot of Forex traders lose money and are washed out of the game repeatedly. Mainly because they couldn’t remain in control, and were overcome by their emotions.
Do you think you’ve got what it takes to become a trader?
Most new traders think of the Forex market as a way to get rich quick. Negligence, and bad attitudes towards the markets will wipe out a cocky traders account at alarming speeds. In our Price Action Protocol Course we teach traders how to control risk and maximize rewards. Only by keeping a positive risk reward ratio money management ratio model, can you achieve consistency as a trader, and have the chance to make a career out of forex trading.
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