Forex Trading, The Best Chance Of Trading Success  

By: Ranju Kumar
google_protectAndRun("ads_core.google_render_ad", google_handleError, google_render_ad);
Definition-In a foreign exchange market different currencies are traded on an electronic platform which has no fixed location, but allows you to buy and sell these currencies on a 24 hour basis, from Monday to Friday throughout the year. This is what is generally referred to as forex trading. The Internet has made forex trading very simple and people from all over the world can trade in currencies. This has made forex trading very widespread and popular.Who is a forex trader?The amount of currencies that are exchanged every day is about two billion dollars, and almost everyone with an inclination to trade has got into it. The individual private traders trading in the forex trading market are linked up to forex brokers who in turn are linked up to MNC's and big banks from all over the world. If you want to become a forex trader and indulge in forex trading you would have to look for an authorized forex broker. These brokers are generally authorized by statutory bodies in their country of origin and are subject to the laws in that particular country.Traditional money exchangeThere has always been a traditional method of buying and selling currencies. These are still now available in some exotic Eastern and Middle Eastern markets where the money changer is the part of the activity in that market. Forex trading is just a new spin to this traditional activity and not limited to the small markets. Money changers mainly exchanged currencies which allowed local customers to exchange the currencies they had for the local currency in use in that particular market to enable them to make purchases. Forex trading has taken this to a much higher level and it allows banks and other institutions to exchange currencies depending on the requirement of each of these from various big companies and even governments. Taking advantage of this forex marketEight Major currencies are traded in conventional forex trading. The market does constantly fluctuate on a daily basis and the trained forex trader will take advantage of the fluctuations to profit from it. The principle is the same as stock markets; buy low and sell high. So, like the stock market, you also need to have a complete knowledge of the market before you venture into it. There are software programs available which will allow you to do demo trades until you are completely familiar with the way the markets behave. There are also pre-programmed trading software programs like Robot which will automatically make the trades for you. All of these can be of possible benefit you and some traders claim to make an almost daily profit, throughout the year. What is the profit potential?Some exceptional traders, who have been in the market for a very long time, claim to make profits of anywhere between 40 percent and 300 percent on a month to month basis! You should NOT expect to make anything like this as a novice forex trader, and in fact it is all too easy to LOSE money. The key to success is to judge the market correctly, work hard with dedication, and persevere. In time, you too can claim your share of the profits from forex trading. There are certainly risks involved, and your profit goal when starting out should be "Don't Lose Money".