08/09
______________________________________________________
The Real Forex Basics
At base, foreign exchange trading, or often referred to as forex trading, is the same as any other kind of trading. The goal is always the same:
SELL SOMETHING FOR MORE THAN YOU PAID FOR IT.
That's all. It works the same way whether you're trading in General Motors stock, or selling used comic books on eBay. The big difference with foreign exchange trading is that instead of trading in things, you're trading in money.
It's trading in its purest form. Foreign exchange trading cuts out everything extraneous and focuses on a single thing: Money. We already track all other transactions using money, so why not eliminate the middleman and just trade money for money.
All you need to do is follow this simple three-step process:
Register for Free To continue Reading
______________________________________________________
The Real Forex Basics
At base, foreign exchange trading, or often referred to as forex trading, is the same as any other kind of trading. The goal is always the same:
SELL SOMETHING FOR MORE THAN YOU PAID FOR IT.
That's all. It works the same way whether you're trading in General Motors stock, or selling used comic books on eBay. The big difference with foreign exchange trading is that instead of trading in things, you're trading in money.
It's trading in its purest form. Foreign exchange trading cuts out everything extraneous and focuses on a single thing: Money. We already track all other transactions using money, so why not eliminate the middleman and just trade money for money.
All you need to do is follow this simple three-step process:
1) Make Money
2) Take Money
3) Repeat
That's the lather, rinse, repeat of foreign exchange trading.
Step one, make money. You make money when the value of what you bought goes up from when you bought it. If you're a gambler, think of it as your table winnings. It's how far you're ahead when you're still in the game.
Step two, take money. For many people, this is the hardest one. Going back to our gambling example, these are the winnings you take away from the table. In order to succeed at foreign exchange trading you have to know when to get your money back out. It doesn't matter if you doubled your money when it peaked; you still lose if you sell it for less than you paid for it.
Step three, repeat. Anything that can be done once can be done more than once. That's how the Universe works. You can't make enough money to live on off a single forex trade. Not unless you've already got enough money that you've got people to work the markets for you. You're going to have to work at it, and that means getting it right often enough to stay in the black.
Once you've mastered those three steps, you're well on your way to being a successful forex trader. This is where everyone starts.
Before we go any further, there's one more thing we need to mention:
