Forex trading is the practice of buying and selling currencies in order to make a profit on the changing values in the marketplace. If you have a thousand dollars, and use that to buy the equivelant value in Euros, and then the Euros go up in value, then you can sell them for more than $1,000 and pocket the profit.
Currency is a medium of exchange that has nearly no actual value. You can burn millions of dollars if you get stuck in the wild and need to start a fire, but other than that, its just valuable because everyone agrees to assign it a value. The same amount of paper without the dead presidents printed on it is practically worthless.
If you are interested in taking your chances and trading in Forex, I would recommend that you research it in depth and consider what your comfort level is for the needed risk. Never trade forex with your rent money and never trade when you "need the money"
To be a successful trader, you first need to understand the markets and how to read charts, and you also need to understand why to never trade based on emotion, and how to notice when you are being emotional rather than logical. I would highly recommend you try a demo-account where the money is not real before you begin risking your own money. Good luck!
Thursday, July 21, 2011
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