Introduction To Forex and Its History

In my last post in this Learning Center series I  gave some brief insight as to my journey in the Forex. In this article I will go over some simple concepts and Forex history. The Forex is a cash inter-bank and inter-dealer market that was established in 1971 when bank float exchange rates began to materialize between countries. Liquidity in this market is like no other. Prior to the recent and explosive international growth of the Forex the industry was limited to master traders who positioned themselves with a $100 million dollar account and were connected directly to the inter-bank currency exchange. Today, the exchange of currency has expanded from master Forex traders, banks, and trading floors to include home computers. The simplest definition of the Foreign Exchange is the exchange of one currency for another. Unlike the traditional exchange of the stock market, one may earn profits whether buying or selling within the Currency Exchange AKA Foreign Exchange or Forex. Banks are guaranteed a buy or sell twenty-four hours a day by the inter-bank currency exchange float. Through broker relationships and trading margin establishment, leveraged accounts are established and individual Forex traders are allowed to enter the market with home-based computers. Individual Forex traders now share the same leverage guarantee banks have.

To compare the Forex to other markets, the current

My Search for the Holy Grail of Forex Trading

As a beginner in the Forex market I wanted to learn everything I could to get an edge. I took multiple courses and entered into mentoring programs etc. I tried all of the technical indicators available in an attempt to find the “Holy Grail”. It wasn’t until after this extensive testing that I realized that success in the Forex market relied heavily on my ability to stick to the basics. All the indicators in the world won’t make you a good trader. I found that the more stuff I tried the more cluttered my screen got and the more confusing trading got. The process I underwent reminds me of a spiritual metaphor I once heard where the farmer who tills his soil and works his land decides to search for enlightenment. Eventually, after years of spiritual search for enlightenment, he finds what he was looking for right there, on his farm, tilling his soil and working his land. However the journey was necessary to discover and appreciate this.