FOREX Global Trading

If you've just stumbled upon FOREX global trading then let me say first and foremost, Congratulations! FOREX global trading has been, since its inception in 1970, one of the most lucrative self start business opportunites available. I am still baffled as to how this wealth creating, trading system has not been spread to the masses. I suppose the answer to that question resides with the same reason you found this article. Starting your own business takes a certain kind of fortitude and dedication that most people just don't have. It takes a certain type of person to have the kind of ambition necessary for success. If you've discovered FOREX global trading recently then it wouldn't be so silly to assume you've tried other ways to make money on your own. After all, trying to learn more about FOREX global trading tells me off that bat that you want more out of life.

The fact that you've found this article tells me a number of things.

-You want to obtain more financial freedom without some get rich quick scheme.
-You want to have your own legitimate business that you won't be a slave to.
-You want the ability to work anywhere at any time according to your own schedule.
-You're an intelligent person who is not afraid to learn an analytical system.
-You're willing to learn how to work most efficiently, knowing that it will pay off in the long run.
-You've already got what it takes to make FOREX global trading work for you.

My last statement may seem like a bold one to make. The bottom line is, you've already taken the first step to achieving your goals through FOREX global trading by taking the time to LEARN before you EARN.

So let's get right into it. Let's learn what FOREX global trading is and how to MASTER it.

1. What is FOREX global trading?

FOREX stands for Foreign Exchange Market. It is based on an international marketplace where currencies are bought and sold. Only the participants in the FOREX market determine the price of one currency against another. In other words, the prices of currencies are based upon supply and demand. This is similar to the idea behind stock price determinations. The difference? Well you could call it a difference, but I call it an advantage. Currency prices can not be affected by large buyers in the FOREX marketplace. In the traditional stock market, when stocks are bought up by institutional buyers, stock prices fluctuate. This is not a factor in the FOREX global trading market place because it is the largest liquid financial market available. Between 1 and 1.5 Trillion dollars are traded everyday in the FOREX market. It's impossible for an institutional buyer to make a splash. This is a huge advantage for the "little guy" who doesn't have a huge budget. If you take the time to learn how to play the FOREX game, anyone can make a fortune. Success is based on following the rules of the market and knowing the signs to look for.

2. How does FOREX global trading work?

Currency transactions do not take place on a centralized exchange like the NYSE. It's a global market and therefore trades take place all over the world through telecommunications. You can trade on the FOREX global market 24 hours a day from Sunday afternoon untill friday afternoon. For GMT time, this is translated to 12am on Monday to 10:00pm on Friday. The process is a fairly simple one. You buy and sell currencies through dealers. The link I provide at the bottom of the article will steer you in the right direction for finding a qualified dealer. Think of a dealer as a broker. The dealers provide quotes for all major currencies and you decide which currently is a sound investment at any given time. A big advantage to working with dealers in FOREX global trading is the ability to obtain a line of credit off of a very small initial rate. You can get a line of credit off of a $500 payment with many dealers. This leverages your ability for huge gains in the FOREX marketplace. The tactic is called marginal trading, and although it can be risky, once you know how to play the game it is the ideal way to "take the house's money". The appeal of marginal trading is that investments can be made with relatively small startup capital. You don't need a big money supply to be a big winner in the FOREX global trading business. This also allows for bigger investments to be made with fewer money transfer costs.

Marginal trading is broken up into "lots". A "lot" is an amount close to $100,000 that can be financed with as little money as .5% down. This means for $500 you can leverage a $100,000 investment. - WOW! That is buying power. Unlike traditional investment methods like flipping real estate, it doesn't take time to build up your wealth. You can leverage your money to grow as quickly as you feel comfortable growing.

3. What are some investment strategies for FOREX global trading?

The investment strategies for FOREX trading don't differ too much from tradition stock market trading. Strategies are categorized into two divisions - Fundamental Analysis and Technical Analysis.

Funamental Analysis will look at a particular regions currency and take into consideration such things as their countries economy, their bank's current interest rate, inflation rates, unemployment levels and a host of other factors. It is important to keep in mind that any anticipations based on fundamental analysis, should be considered against the perceptions of other investors in the FOREX marketplace. Afterall, it is more than likely that the current currency price reflects all perceived knowledge of a country's economical situation.

Technical Analysis is based on graph reading and interpreting signals from financial statistics. The link I give at the bottom of this article gives great insight into this strategy of investing in the FOREX global market. I personally am a big believer in Technical Analysis over Fundamental Analysis. Numbers are open to only so much interpretation and perception. Technical Analysis is a much more black and white way for many investors to choose their winners in the FOREX global market. This is solely my opinion. You can read on through my link below for a far more granular, in depth look at numerous strategies that work and the most efficient ways to employ them.