What Every Forex Rookie Needs to Know

By | July 27, 2017

First of all, let’s explore the exact meaning of this word: “FOREX”.

FOREX is the international currency exchange, where every single day nearly 3-5 trillion USD are being transacted by traders from all around the world.

Most people are 100% convinced that FOREX is the same thing as the notorious Stock Exchange but they are wrong.

Although when it comes to certain aspects, these two are pretty similar, a few significant differences are there to make sure that you will set them apart.

FOREX is a market where the currency can be electronically traded, a process that can be done directly through any authorized bank.

In order to start your FOREX journey you need a computer with Internet access and you have to make ensure that you’re well-acquainted with this world. If you are a newbie you can access various information and solutions of the issue’s that are faced by newbies via various forex forum available on the internet.

This is the main advantage when it comes to this activity field: you can pretty much earn money and work from anywhere.

Another advantage is the schedule established by the FOREX market – the trading sessions take place during a certain time frame, five days per week, unlike the Stock Exchange, where every single state has its own working schedule.

On FOREX, just like on Stock Exchange, there are mandatory regulations and oversight bodies that protect the interest of all participants while the pricing mechanism is mostly based on demand and supply.

And, of course, just like on Stock Exchange, there are traders and investors looking to administrate the sale and purchase of every currency using your personal capital.

Another major aspect that you must take into account is the psychological factor

Before you start trading on a real account you have to overcome your weaknesses in terms of fear, doubt, greed, euphoria and other emotions that most times interfere when you’re trading significant amounts of money.

When it comes to a demo account, all your mistakes are passed over, but trading on a demo account for too long is not recommended either: your analysis becomes less tenacious and skewed and a transition to a real account will not be easy, experts claim.

Trading on a demo account between two weeks and two months is certainly not enough to become a professional and gain the experience that you needed.

But just like anyone who is part of this new “generation” of traders, there is a time when you should start trading on a real account because the more you risk, the more you will start opening new windows to make profit and boost self-confidence.

The simple fact that you own a real account will motivate you to start the market analysis, look for interesting trading opportunities, to improve your strategies or test new ones – in short, you will be able to develop a successful professional life.

Despite the fact that your FOREX experience will be littered with ups and downs, winnings and losses, eventually you will discover that, in fact, this is your path to success.

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