New To Forex ? Start Here

Basic but important info about trading Forex

New To Forex ? Start Here

Postby Paul » Tue Feb 24, 2015 2:11 pm

Whats it all about ?

The Forex market is the biggest traded market in the world. It boasts a traded volume of approximately 5 trillion dollars PER DAY.

The market is open to everyone to trade from retail traders to huge hedge funds and banks. Unlike the stock market the forex market is open 24 hours a day 5 days a week.

Trades are placed on currency pairs , for example the Euro Vs the US dollar (EURUSD) where you may think that the value of the euro against the US dollar will go up to a certain level.

As a retail trader you will be using a broker to place your trades using computer software which is either website based or a standalone desktop application. You choose a currency pair that you think will change in value and trade it accordingly using either a buy or sell position.

For example if the value of the EURUSD currency pair is 1.35000 and you think it will drop from this level you will place a sell trade.

This process normally takes less than a second to accomplish.

The busiest time of the day for trading forex is the London session this is because the London market starts trading at 8am, which is close to the end of the trading day in the Asian countries, as the Banks in London are opening at 8am they are able to deal with traders in Tokyo, Hong Kong or Singapore whose trading day is just coming to a close.
Around 1pm London time the traders in the US are sitting down at their desks to begin their day and hence the afternoon period of the London session co-incides with the morning session of the US market.

In this set of articles we will show you how to start off in your forex trading mission,

    How to setup your trading platform for the first time.
    Different types of trade entry.
    Stop Loss and Take Profit.
    How to avoid the pitfalls/typical new trader mistakes.
    How to identify the rogue brokers.
    Trade Emotions.
A Typical Selection of Forex trading Pairs

pairs.jpg
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Paul
 
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