Picking the right Forex broker for you

June 25, 2009 by  
Filed under Forex for Beginners

Playing the Forex market is something which more and more people are doing today, yet for those of us who have not yet begun our adventure in the Forex world, it can be a somewhat cloudy topic. Beginning to invest in the foreign exchange market is not something that just happens. That is to say that you cannot just walk into an office and buy some money in a foreign currency and become a Forex trader by doing so. It requires a process to be put into action, and the first step towards this is to choose a Forex broker.

Picking the right broker is not something that can be done without a good deal of prior research, as the quality and practices of brokers differ greatly from those who work with large banks (and therefore themselves have greater borrowing power and leverage) to those which are more independent but may suit a prospective trader with specific needs. It is advisable to join an online forum and discuss your own aims with the forum users. Getting a consensus for which type of Forex broker will serve your needs will narrow your possible choice to a point where you can make your own decision.

Once you have chosen a broker, you will need to open an account. Opening a Forex account involves proving your competence to deal with large sums of money – you will be playing with borrowed money if you get seriously involved, and brokers are not likely to lend to just anyone. It is also advisable to play with a virtual, paper-based account initially, until you are fully confident of your abilities to make a real profit.

Forex trading – Do it your way!

June 25, 2009 by  
Filed under Forex for Beginners

There have been some extremely successful traders in the history of the various markets, people who have made so much money in fact that they have been able to retire before the age of thirty in some cases. Whether the idea of being retired before you are even half way to the legally-mandated retirement age thrills or terrifies you, it has to be said that there is a real upside to having the opportunity. If we could all do what those super traders have done, we would surely do it, giving us more time to spend with loved ones. It probably comes as no surprise that such a way of operating is impossible.

As impressive as the idea of making billions and quitting before the market has the chance to take it back may be, we cannot just ape the actions of past successful traders and expect that to work for us. The market is constantly changing, and things that were true yesterday, a month ago or before we were even born are not necessarily so now. You need to find your own way, and this is as true of market trading as it is for anything else. As much as any other reason, this is true because sometimes you need to react instinctively. If you have been following someone else’s strategy, then you’ll be sunk because you do not have their instincts. Play it your way – learned through years of effort if needs be – and you will have a much greater chance of making a fortune.

Learn to play the market by playing a game

June 25, 2009 by  
Filed under Forex for Beginners

Forex is a complicated system which still often confounds people with years of trading experience. Knowing how a situation usually resolves itself does not mean that you will be able to correctly predict how it will resolve itself every time. The market data is an excellent way of judging what the situation is at any given time. It is also as good a way as you will find of predicting future market behavior. Nonetheless, it is not a guaranteed predictor and consequently even the most experienced traders sometimes make a mess of things.

The less experience you have – in anything – the more likely you are to have the wrong reaction to a given situation. If this is in a golf match, then all that rests on your mistake is a little personal pride. On the Forex market, it can end up costing you real money. It is therefore massively important that you have as much knowledge to back up your every decision as you possibly can. One way of accruing knowledge without making costly mistakes and potentially bankrupting yourself is to start by playing online Forex games. These are a kind of simulator which closely reflects the real-life market and tells you how good your instincts are – without ruining you if you make a mistake.

There are Forex games available on the Internet which run entirely free of charge. There is obviously some variation in quality, and you should ensure that you check out more than a couple before committing to one. The more experience you gather before playing for real, the better your chances of making real money in the future.