What is Forex Trading
In order to be a Forex trader. You must first understand what Forex trading is.
Forex trading is not as complicated as it sounds. Forex is the abbreviated version of foreign exchange Forex trading is simply one currency traded against the other. For example the EUR/USD is the Euro traded against the US Dollar. It is the Forex market which determines the value of one currency against another. The Forex market is huge and is always getting bigger. It has a daily volume of $4 trillion US dollars.
The main reason for the Forex market is to facilitate International Trade. Goods and services are exchanged 24/7 all over the world. In the modern world cross border transactions are very common. These often require a payment in a foreign currency as most countries have their own unique currency’s. For example if a UK firm was to buy something from a firm in the US the currency used for payment would have to exchanged as both the countries use a different currency. This is the purpose of the Forex market, to make cross border trade very simple. As transactions like this happen all the time the market maintains a rate of exchange between the two given currencies.
Traders can take advantage of this
However as traders we can take advantage of fluctuation in the different currencies and seek to make money doing so. When we trade Forex we either expect it will go up (go long) or we expect it to go down (go short). For example if a trader believes that the Euro will rise against the US Dollar they can go long. If he is correct he will make money if he is incorrect he will lose money. However trading is not like gambling. By using trading systems and trading indicators we can get a very reliable idea of which direction the market is heading in next so we can profit from it
Forex Trading can be very lucrative
Once you understand trading and you can trading successfully Forex trading can be incredibly lucrative. Just a small target of capturing 20 pips a day and a reasonable stake of £10 a point means you can make £200 a day. That is much more than the national average wage in any country. Once you can make £200 a day then you can gradually increase your stake and you can keep increasing your daily profit. As you increase your account size there is no limit on how much money you can make each day. It is entirely up to you.
Forex trading orders can be easily placed
The easiest why for traders to enter an order into your broker. IG and Capital Spreads are both very good brokers. We have written previous blogs about which Forex broker is the best to choose. All have unique features but the process of entering orders is broadly similar. You enter your order in just a few clicks and within a few seconds your order is processed and you are in a Forex trade. It really is that simple.
Forex trading can be very easy
The only difficult Forex traders really face is knowing whether to buy or sell a particular market. This is where most traders suffer and lose money. At the Dynamite Indicators our range of trading software and trading indicators make this very easy. If you follow our trading systems and trading indicators you will find yourself consistently making money. Just be slowly increasing your account size you can easily be earning £200 within a few months then you can keep increasing that as much as you like. We have been making consistent profits using our trading software and trading indicators for many years now. You can see the trades we have taken on our trading blog.