For many of us which do not know, Forex market is made out of two
components. These are the spot market and term or banking market.
The spot Forex is the place where the prices are moving every second due to the trades which are performed every seconds. This market has a daily volume of approximately 1,5 trillions united states dollars in trading.
The other one which is referred to as Forex banking where everyone makes exchange for different types of reasons which no one can predict. The daily approximate volume of this market is 2,5 trillions united states dollars.
Those two combined means a volume of approximate of 5 trillions dollars.
What are the quotations reasons? Or which is the main determination of the price moves? Who determines the price movement, the spot or the offline exchanges?
Well the answer is a little bit complicated, but clearly the one which has more volume and this is why we should treat the market in long run as an investor nor speculator or gambler. So the Forex exchange made through the bank accounts or at exchanges dealers is done for many reasons, such as: tourism, need for cash, buying some item from a website which is out of our continent or country and many more. That is why no one can predict this behaviour of many people or companies which makes the Forex market to move up and down. In short terms this behaviour, determined by many reasons, is moving the prices.
So, if you treat and trade on Forex market in short thinking you are going to get a gambling outcome. You, better go to a casino where you get the drink and food for free.
But if you treat and trade on Forex market in long, smart run you might get some results, even outstanding ones. But that depends on the risk management which is strongly related to your capital management.
If you start trading without taking into consideration the risk you might lose your entire capital even if you are a long runner. So, here comes the question- how do we treat and trade on Forex and manage the risk reward?
The answer is not a secret nor easy, especially if you have emotional management issues. Taking into consideration the risk greater than others investment tools the emotion are very strong related with the risk. In order to manage the risk we need emotional management preparation. Apart that we also need technical and fundamental knowledge.
Before trading currencies we have to go through some steps. These are the following:
First we need to find a good execution broker. This one has to be regulated by international authorities and it has to be flexible. What does this means? The broker has to allow all types of leverage, starting from 1:1. The leverage is a good tool, but also a dangerous one. The broker has to allow you to trade with micro lots meaning 0.01 lots and it needs to have micro accounts for beginners.
The next step is to choose what type of account and/or asset to trade on currency market.
The best tool or product to choose to trade on long run is to open a micro account. This is the best choice for everyone, especially if you have a small amount of money and you are a small risk taker. If you are a professional, and you have an algorithmic trading, the necessary capital for that, you can go to the Forex daily trade, but this is something only professionals should do.
The broker needs to provide us with many withdrawal methods.
The spot Forex is the place where the prices are moving every second due to the trades which are performed every seconds. This market has a daily volume of approximately 1,5 trillions united states dollars in trading.
The other one which is referred to as Forex banking where everyone makes exchange for different types of reasons which no one can predict. The daily approximate volume of this market is 2,5 trillions united states dollars.
Those two combined means a volume of approximate of 5 trillions dollars.
What are the quotations reasons? Or which is the main determination of the price moves? Who determines the price movement, the spot or the offline exchanges?
Well the answer is a little bit complicated, but clearly the one which has more volume and this is why we should treat the market in long run as an investor nor speculator or gambler. So the Forex exchange made through the bank accounts or at exchanges dealers is done for many reasons, such as: tourism, need for cash, buying some item from a website which is out of our continent or country and many more. That is why no one can predict this behaviour of many people or companies which makes the Forex market to move up and down. In short terms this behaviour, determined by many reasons, is moving the prices.
So, if you treat and trade on Forex market in short thinking you are going to get a gambling outcome. You, better go to a casino where you get the drink and food for free.
But if you treat and trade on Forex market in long, smart run you might get some results, even outstanding ones. But that depends on the risk management which is strongly related to your capital management.
If you start trading without taking into consideration the risk you might lose your entire capital even if you are a long runner. So, here comes the question- how do we treat and trade on Forex and manage the risk reward?
The answer is not a secret nor easy, especially if you have emotional management issues. Taking into consideration the risk greater than others investment tools the emotion are very strong related with the risk. In order to manage the risk we need emotional management preparation. Apart that we also need technical and fundamental knowledge.
Before trading currencies we have to go through some steps. These are the following:
First we need to find a good execution broker. This one has to be regulated by international authorities and it has to be flexible. What does this means? The broker has to allow all types of leverage, starting from 1:1. The leverage is a good tool, but also a dangerous one. The broker has to allow you to trade with micro lots meaning 0.01 lots and it needs to have micro accounts for beginners.
The next step is to choose what type of account and/or asset to trade on currency market.
The best tool or product to choose to trade on long run is to open a micro account. This is the best choice for everyone, especially if you have a small amount of money and you are a small risk taker. If you are a professional, and you have an algorithmic trading, the necessary capital for that, you can go to the Forex daily trade, but this is something only professionals should do.
The broker needs to provide us with many withdrawal methods.
If you like to trade on Forex market with a good regulated broker you can check this out! http://www.robo-forex.net
If you like the micro accounts, you can check this out! http://www.pureprofitfx.com
If you like the micro accounts, you can check this out! http://www.pureprofitfx.com
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