Last time I posted about testing a WorldWideMarket online FOREX platform. It was something very new to me even though I am already familiar with charts and everything. Below is a screenshot of the Meta Trader 4 Demo account I have been testing for sometime now.
So what did I learned about Forex trading using this demo account so far? Well let me share 4 things that would help you start thinking about FOREX as well.
Yes if you think the stock market is the most erratic place in the world why not look at Forex. Currency rates can have a wide difference within a day. Such nature requires full attention to catch those moments. Though volatile planning and carefully reading charts to determine the general trend will surely help you decide to what trade you will go for that is either a buy or a sell trade.
Earn either buying and selling
Yes if you are not familiar with FOREX you might scratch your head. Technically you are handling two commodities when trading FOREX that is the currency pair. You sell a currency pair when the exchange rate is going down and buy when it is going up.
Here is the rationale behind this(from my previous post about FOREX click here to read full article)
Now going back to our analysis when the USD-PHP exchange rate foes up from 42 to 43 the action we will make is to exchange our dollars to peso thus we are actually buying Peso by selling our Dollars and in the process we profited 1 Peso per dollar. Now on the other hand when the exchange rate goes down from 43 to 42 we will exchange our peso thus actually buying dollar by selling Peso and saves us 1 peso per dollar which is technically a profit. With these we can actually make money whether the exchange rate is going up or down as long as we take the right position. That is why we cans still apply our technical and fundamental analysis to determine the direction of the currency pairs trend and thus make profit.
You can earn or lose in a second big time
I made about $3,800.00 in just a few hours for 3 days monitoring the trade. I even made about $600.00 after placing a trade in the morning and seeing it again during lunch(I wish this was already my money) and I lost about $5000.00 in just a day. Due to its volatile nature and since currency is affected by a nation’s state a strong currency might just drop on an unexpected day when there is a war or chaos in that country. So one must keep oneself up to date on current world events because details that affects a nation or a region could adversely or positively affect the currencies trend thus making profit either buying or selling it.
Trading is open 24/6 depending on your location
Unlike most stock or commodity exchanges, the FOREX market is open 24 hours nearly 6 days a week depending on where you are on our earth. The FOREX market is a global market where participants are nearly all banks, financial institutions, and some financial agencies anywhere in the world. So as one nation goes to sleep the next nation still trades and so on and so forth thus it is a 24 hour trade. In my time testing the FOREX Market is close from midday Saturday and opens about lunch time Monday. As long as the currency you are trading is open you can trade.
You might be a beginner FOREX trader or a seasoned one I would love to hear your ideas and experience trading FOREX. Please share your thoughts down in the comment box or if yo have questions please do post as well. Who knows an expert FOREX trader might drop by to share his or her two cents.
P.S. Want to learn more about Forex Trading? Check out this live seminar I found in the web: Forex Orientation Seminar Sept 14, 2013 go to http://fitzvillafuerte.com/ or http://www.topforexseminars.com/