Forex Trading: Learn How to Be Consistently Successful in Forex Trading

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Introduction

The word Forex is a contraction of foreign exchange; it is sometimes abbreviated further, and simply called FX. Forex provides opportunities for speculation. Simply put, Forex is the trading of currencies. In its broadest sense, forex includes all commercial and speculative buying and selling of all the world's currencies, making it the largest market in the world.

In a forex trade, one currency is purchased while another is simultaneously sold; in other words, one currency is exchanged for the one being bought. The term forex properly refers to all currency trading done anywhere in the world; however, in practice, the word is often used to refer specifically to the trading of currencies by speculators.

Although it doesn't get as much media attention as the stocks or bonds markets, the foreign exchange market is the biggest financial market in the world. With over $5 trillion worth of transactions occurring every day the forex market allows you to buy and sell money to gain profits.

There is no one-stop shop for buying and selling currencies; trade is conducted through a lot of individual dealers or financial centers. The forex market is open 24 hours a day, five days a week, and currencies are traded worldwide among the major financial centers of London, New York, Tokyo, Zürich, Frankfurt, Hong Kong, Singapore, Paris and Sydney. This means, at any time during the day you can find a financial center that is buying and selling currencies.

With the constantly improving technology for trading, dealing in currencies is now more accessible than ever. In the past, the foreign exchange market was the domain of government, or companies with a lot of money. However, with the wide spread access to the internet, firms now offer any average Joe the ability to open accounts to trade currencies. All you really need, in terms of hardware to get started, is a computer and access to the internet.

Trading foreign exchange on the currency market, can be a thrilling hobby and a great source of investment income. To put it into perspective, the securities market trades about $22.4 billion per day; the forex market trades about $5 trillion per day. You can make a lot of money without putting too much into your original investment, and predicting the direction of the market can be a real rush. Simply, forex is the market in which money or currencies are traded. You can trade forex online in multiple ways.

It’s a fact that there are plenty of challenges when it comes to Forex, and I’m sure that most of you have come across these challenges. For example, have you ever paid thousands upon thousands of dollars to attend Forex seminars and workshops thinking that you would learn the key to success, only to lose it all? Or maybe you are one of those traders who have made good money in Forex with splendid trades and winning streaks, but then you eventually lost it all?

If these two examples sound like you – believe me, you’re not alone. Plenty of people have invested thousands and thousands of dollars to learn Forex trading but have not managed to reach Forex success. Instead, they lost a ton of money and are back to square one.

You can live the life you want, buy the house you want, drive the fancy car you want, have beautiful girls in a pool and do whatever you want without needing to concern yourself with money again.

This is what most forex courses and seminars are preaching. Time and time again, they fail to deliver what they promise.

I'm not going to promise you that you can buy a bungalow by the sea, drive a Lamborghini and have sexy girls by your side. But what I can promise you is that I will show you the way to replace the income you make in your day job with no more than just two hours a day.

What I can promise you further is that, you can scale it up if you want to. You can make even more money than you do in your job. This book has the ability to allow you to quit your job and live life comfortably from now on.

Bitcoin Trading

As a Forex entrepreneur you must be interested in trading the highly sought-after Cryptocurrencies. The second part of this book is dedicated to reveal everything you need to know about how to get started trading in Bitcoins. 

Chapter –1

How Does the Forex Market Work?

Are you tired of working all your life and yet you have little or no savings at all? Do you worry about the state of your financial condition and that your money may not be enough to meet your family’s needs in the future, then this simple course on Forex trading has the solution to your problems.

If you want to become millionaire within a short time, investing your money in Forex trading might be the best thing for you. With the help of a finance expert, investing your money online can bring you lots of profits. You can become a millionaire before you even know it.

Investing your money online

What are the things you need to know about online money investment? Money investment, in simple terms, means putting your money into something with a profit in mind. If you invest your money now on something like an asset, you hope that the asset will earn you more in the future or can be sold at a higher—and therefore more profitable—price.

You can put your money in a Forex (short for foreign exchange) investment, where they buy or sell (or trade) monetary currencies. One of the ways how you can join a Forex trading and invest your money is going online.

American Eric Brown used to have a regular 9 to 5 job, like many other: He used to be an ordinary office clerk. I worked a lot every day and didn't even dream to earn lots of money. I knew that I'll always have money for food and ordinary things and never looked for additional sources of income, he said. But after learning Forex he was surprised how his investment soon made profits. Soon, he became the owner of a small but fast-growing business, thanks to his online investment.

Now, I recollect my previous life with warm smile, he says. Now, I consider myself a happy person.

Expert Advice

Investment in Forex trading is highly lucrative, but there are many risks. It is also time-intensive since you will need time to study the complexities of Forex trading and examine whether your investments are actually earning or not. That is why for people who are into Forex trading especially those who are doing it the first time, it is always recommended to seek expert advice from an experienced Forex trader.

Some people have this notion that you need a lot of money to invest. You can invest online for as low as USD$500 through bank wire or other methods. Even with as low as $500, you can earn reasonable profits online. With that amount sent through bank transfer, you can already get a forex account and with a little training watch how that small account can earn you more money.

Azan Tengku, invested a good portion of his savings after learning Forex from this course. Thanks to this Forex trading course my lifelong ambition came true — I became a millionaire, he said. Yes, I have a 7-figure balance in my bank account received directly from my Forex Investment. My life has changed greatly. My family and I are very happy.

Like Azan, you too can be a millionaire—and you do not have to wait for it until you are old. So why not try investing your money in forex trading? Becoming a millionaire is easier than you think.

If you want to know more about investing your money online, keep reading this book!

FOREX is the largest market in the world.

The Foreign Exchange or FOREX is the largest market in the world. The biggest traders on the currency exchange market are governments, banks, and corporations. More money is traded on the FOREX in one hour than is traded on the New York Stock Exchange in one day. With all this money flying around it isn't hard for some of it to land in your pocket.

Currency trading is very simple in comparison to the NYSE. FOREX only has about 30 currency pairs vs. the NYSE's universe of thousands of stock offerings. In FOREX trading, currencies like the dollar and the euro are paired with each other in order to produce a buy/sell option to the trader.

How Forex Works?

When you're playing the FOREX market there are two choices: buy or sell. Since there are only about 30 or so currency pairs (example: British Pounds vs. U.S. Dollars or Euros vs. Swiss Francs) the market isn't very wide.

A normal trade goes something like this: Say that 1 euro is worth $1.30 U.S. . From this price you can either buy Euros, hoping it will go up higher, or sell Euros, hoping it will go lower vs. the dollar.

When you make your trade you buy or sell in 'lots'. A lot is a larger block of money that your brokerage is offering a piece of. The overall size of a lot is not relevant to trading FOREX accounts because you determine what price to put on a currency price move.

Since currency prices move very slight amounts, the pennies are sub divided into 'pips'. These are hundredths of a penny in the case of the USD-EUR pair. So using our example earlier; the Euro is worth 1.3000 and it goes up to 1.3025, that's a 25 pips move up.

When you place your trade a pip can be worth 1 penny, 1 dollar or even more. That 25 pips could be worth 25 cents, 25 dollars or more. When you close your order the money is yours. Simple!

The forex market is huge: truly a global marketplace, operating all the time, with just a brief cooling off period on weekends. Due to this size and global scope, prices can be observed and traded, but not easily manipulated.

Why Trade Currencies?

Forex is the world's largest market, with about 3.2 trillion US dollars in daily volume and 24-hour market action. Some key differences between Forex and Equities markets are:

Many firms don't charge commissions – you pay only the bid/ask spreads.

There's 24 hour trading – you dictate when to trade and how to trade.

You can trade on leverage, but this can magnify potential gains and losses.

You can focus on picking from a few currencies rather than from 5000 stocks.

Forex is accessible – you don’t need a lot of money to get started.

How Forex Rates Change?

Forex rates can be affected by events in your backyard or anywhere in the world. When such events affect the value of a currency, the currency value can often tend to trend in a particular direction for a period of time. Analysis of historical forex market action in light of current market conditions (known as technical analysis), possibly combined with consideration of global events and markets (fundamental analysis) can help the forex speculator gain insight into currency markets that might allow the trader to project future price movements.

However, such insight and potential success in forex speculation requires experience, commitment, discipline and perhaps a special type of intelligence, and will come only at an investment in time, experience and financial loss. Forex trading is not for everyone, but it can afford an opportunity for excitement and profit for the right person.

Online Forex Trade

Particularly for private speculators, forex trading occurs online. Most private forex traders participate from home or office, over their Internet-connected desktop or laptop computers. In fact, the Internet helps explain the dramatic growth of foreign currency speculation. Individual traders, perhaps just like you, all over the world can participate in this online market.

Traditionally, equities trading occurred only in established exchanges, where parties can meet and agree to a trade. Over time, these exchanges have become subject to stringent regulations to monitor and moderate activity. Forex is termed off-exchange trading, or OTC (over-the-counter) as each party deals directly with each other, where ever they may be. With this freedom comes some risk, as well as, it is subject to very limited regulations.

How Does the Forex Market Work?

Until the 1970's, and for the previous 100 years, the value of most currencies was tied in some way to the value of gold. In 1944 this gold standard was replaced by the Bretton Woods Agreement which valued the United States dollar against gold, and all other currencies against the US dollar. In 1975 that agreement fell apart and a system of floating exchange rates was widely adopted, leading to fluctuations in currency values in an open market-and laying the foundation for foreign exchange speculation.

Today, trading in foreign currencies by speculators usually takes place through a forex broker or dealer, who provides the trading platform to transact forex trades. Such trades occur in currency pairs, such as USD/JPY (United States Dollars/Japanese Yen). Note that two currencies are always involved in a forex trade, with one being purchased while the other is being sold.

The forex trader will generally hold the purchased currency (called a position) for a period of time, intending to profit when the prices of the two currencies change favourably. The transaction is completed, or the position is closed, when the opposite currency is bought and the other sold. Profit is calculated by the difference in the buying and selling price.

Different brokers offer different services, and traders need to be careful their broker is serving their best interests. Each broker provides demonstration or practice accounts, where a new trader can play with virtual money until they feel comfortable opening a real account. Analysis can be completed and orders are placed online, at the trader's request.

Why Trade Forex?

The profit potential is why participants enter the market. But why would a speculator choose to trade forex instead of equities or futures?  Forex offers several advantages over speculative trading in futures, stocks and other equities. Eight major currency pairs dominate most currency trading, so it is a much simpler market to follow for most traders. The vast majority of trades involve the United States Dollar, while the Euro, British Pound and Japanese Yen are also widely traded.

Although most currency speculation occurs between a relatively small number of currencies, many brokerages offer trading in a much wider range of less commonly-traded currencies.

Some prospective traders looking to participate in speculation are attracted by the low account balances required to open a forex account with some brokerages.

Why Currency Trading Is Not For Everyone

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for everyone. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. Remember, you could sustain a loss of some or all of your initial investment, which means that you should not invest money that you cannot afford to lose. If you have any doubts, it is advisable to seek advice from an independent financial advisor.

Why aren't all Successful Forex millionaires?

This is an honest question. If you consistently trade with at least a 55% or better success rate month after month, why are you not a millionaire? I know you will have bad days, but I read some people have 80%, 95% successful trades almost every day. So if you consistently have successful trades can’t you just keep increasing the amount you trade? Instead of trading one unit, trade 10 units at a time, or 100 units.

I know you need the money to back up the trade, but let’s say you start out with 10K, and you successfully make 100 pips a day. Start out trading one unit, in 10 days you have doubled your money, so you start trading two units at a time, 10 more days your 20K is now 40K.... Double again, 30 days after you started trading your 10K is now 80K.... 40 days 160K, 50 days 320K 60 days 640K, 70 days 1.28 Million. The growth rate is exponential if you did this.

I am sure there are lots of traders out there that easily average 100 pips a day. Again I know there will be bad days, but if your success rate is fairly consistent over the course of a month and you have good money management system (nice SL with minimal risk) why wouldn't you be a millionaire, or a billionaire, because in order to double your money in 10 days, you'd have to risk an insane amount of money per trade. What will happen is that eventually you'll hit a losing streak and your account will shrink down to nothing.

Look at it this way. If you have $10,000 and