Forex Fortunes Guide

Klaus Sardenberg

• Publisher: Bibliomundi
• Year: 2021
• ISBN:
  9781526041784
• Edition: 1
• Topic: Business
• Subtopic: Trading
• Index: Business

The aim of this book is to give readers a brief overview on Forex markets from the means through which traders can develop the proper mindset when trading, how to trade on the Forex market, why emotional management is critical to successfully trading on the Forex market, to discussing some of the favorable qualities a good Forex trader should posses. These aspects of Forex trading will be discussed in depth in the other chapters that follow but for now, we tackle the basics pertaining to Forex trading as a money making entity.Get all the info you need here.

Chapter 1:

Introduction

 

Synopsis

 

Forex, abbreviated as FX, is a word that describes the simultaneous selling or buying of currencies; it is an OTC (Over the Counter) Market transaction which operates 24 hours a day, 5days a week.

Forex Markets are the largest financial markets possessing a trading volume of about $3 trillion per day. Forex trading operations take place in all the major financial trading centers all over the world; thus, these trading operations tend to overlap into the different time zones globally.

 

The Basics

 

Forex means the process of exchanging one currency for another based on the market’s exchange rate with these currencies being sold and purchased in pairs. For instance, for you to purchase Japanese Yen you have to sell US dollars and as a result Forex currencies have to be quoted in pairs for example GBP/USD, EUR/USD, or EUR/JPY.

Some currencies have more demand than others meaning that that those with more demand trade more frequently and are referred to as major currencies.

Some of the major currencies include the Swiss Franc, Japanese Yen, British Pound, Australian Dollar, and US Dollar, whereas the less frequently traded currencies are called minor currencies, these are the currencies used in small developing countries, others refer to them as exotic currencies. Currencies commonly used as investment vehicles are confined into four pairs of currencies denoted by USD/CHF, GBP/USD, USD/JPY, and EUR/USD.

 

Where Forex Trading Takes Place

In the past, Forex trading was exclusively conducted by hedge funds, central banks, multinational currency companies, and major banks however; this has changed in recent times due the latest surge in internet development and market innovations allowing even the small time trader the opportunity to participate in the Forex market. Some Forex broker companies offer a variety of accounts to their clients enabling retail traders the chance to trade in relatively smaller lots.

Even though Forex markets have undergone some remarkable improvement, it still remains largely unregulated; and Forex trading rules have not yet been clearly defined especially when trades go beyond international borders.

Furthermore, traders with a sizeable amount of risk capital as is the case with hedge funds and banks which have the ability to influence the Forex market due to their huge financial leverage; therefore, those with little or no experience in Forex trade will be venturing into risky unchartered territories.

In as much as Forex trading carries very high risks, traders who go through the trouble of educating themselves on the whole process could quite easily make a huge fortune in just a few weeks, with those doing the contrary getting disastrous results amounting to huge losses.

 

Chapter 2:

The Mindset and Trading

Synopsis

Forex trading can be highly lucrative especially if you are equipped with the necessary trading knowledge and skills. Apart from possessing trading skills, it is essential to have the right mindset for you to be successful in Forex trading.

This is the crucial aspect where most traders fail. No matter how good you are in utilizing various trading strategies but without the right mindset, you might not be able to achieve the desired results.

Some would think that trading success happens in an instant and that they can easily make money out of it overnight. Although ...

Table of contents

• (Sem título)
• Foreword
• Chapter 1:
• Chapter 2:
• Chapter 3:
• Chapter 4:
• Chapter 5:
• Chapter 6:
• Chapter 7:
• Chapter 8:
• Chapter 9:
• Wrapping Up