How Can I Learn To Trade Forex For A Living?

What factors qualify the forex market as a
source of living earner?

The foreign exchange
market is a global market where currencies valuation and circulations are
monitored over the counter hence branded the name OTC, which simply means OVER
THE-COUNTER.

Why OTC?

The existence of the
forex market conducts its manifestation on an intangible platform. The exchange
of the various foreign currencies, like letâs say for example;

A buyer from South Africa, shopping a wristwatch
at amazon market, but the pricing of the watch is in valuation of dollars
currency and the guy from South Africa has rands.

Then that is exactly what foreign exchange
entails-pair of foreign currencies being exchanged via buying or selling.

Vital Forex Language before Trading

Pip; a language used to mean the level of the
profit margin earned. The buying and selling of the foreign currencies, is
conducted through the digital machines and the calculation on profit earned is
worked out this way;

EURUSD: 1. 25632 TO 1.25631

Difference work-out:
(1.25632-1.25631)= 0.00001 pip

N/B: the higher the PIPS, the higher the profit
margin.

Quotes; the word quote in the foreign market separates,
the BID price & ASK price. The Bid price is your buying price of a PAIR currency and the Ask price is the selling
price of the PAIR currency.

 

Spread; this is the difference between the BID price
and the ASK price and the result is the one called SPREAD!

Leverage; this forex terminology refer to amount
value of your BID price which you request your broker, to magnify it with an
intention of maximizing the profit since, LEVERAGE is a profit or loss determinantâso
take care before requesting!

Lots; financial
market consider this terminology as UNITS. The word is also known as contract, and it is conventionally not below 100,000
units.

Reading charts; the forex market is dependable of your
accuracy in analysis hence the reading of the charts can be done either in bars
or candlesticks.

Orders; the procedure of buying and selling of the
pair currency is done when the buying is low and the selling higher.

N/B: There are two basics forms of orders in the financial
market and the smart placing of orders demand for your accuracy in forex market
analysis.

·
Market orders

·
Pending orders

Contact Forex Broker before Investing

There are numerous
online brokers who can offer you an account and guide you on the pattern of
placing of orders. The placing of either pending or market orders depends with
the current situation of the market.

Free trial accounts mold
your experience in the forex market. The smart investors are not motivated by
opportunities, but they are truly encouraged by the challenges since, they are
focused on the long-term goals and visions of their investments -so that concepts makes you sail
in the sail boat with the smart investors for you to make a living!

The following are key elements of a trust worthy broker;

·
Watch
on the Minimum lot size he/she offers

·
Confirm
if the broker is regulated by the support team

·
Check
on the leverages that he offers if appropriate

·
Are
his trading methods effective?

·
Bonuses
and terms and conditions

·
Withdrawal
and deposit terms and conditions

Final Scores

The FOREX market is
the biggest global financial market where trillions are exchanged every 24
hours. The forex market is a good source of living- only when one follows the
appropriate channels before making huge pips.

It is a 24-hour
economy. The market operates for 24 hours since when one nation closes another
market from another nation opens. However, it fails to operate on weekends that
are Saturday and Sunday it is not functional.

The qualification
for one to scale high and make big pips depends on the analysis of the bidder.
The reading of the charts and placing of the orders needs guidance of an
experienced broker- to aid you gather the necessary forex skills to earn a
living—-just be PATIENT!