4 Things I Learned About Forex Trading

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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.

Trade Forex with WorldWideMarkets

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.

Volatile

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/

Financial Freedom Advocate About the blogger

Louis Delos Angeles is a Certified Public Accountant, blogger behind Investing in Philippines, and author of Investing in Stocks: Preparing for the future small amount at a time. Check him out in Google+ Learn more about Louis and his financial freedom advocacy here.

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4 comments for “4 Things I Learned About Forex Trading

  1. Crispulo S. Onrubia
    September 13, 2013 at 9:54 am

    Greetings! Re Forex, If you have profit during day trading, can you take it and avoid losing if its still exposed? Thanks.

    • September 13, 2013 at 7:52 pm

      hmmmm based on the demo I am using I guess yes but again that is just a demo.Hope someone can enlighten us on that. For anyone there who can help us please share your knowledge.

  2. September 13, 2013 at 5:39 pm

    Hi Louis, a very informative post. A question though. How much does one need to start trading FOREX? Is the worldwide market you have tried a local broker or an international one? Thinking of trying to try FOREX but don’t know how to start. thanks! TON

    • September 13, 2013 at 7:43 pm

      hi there accabiao! WWM contacted me for them to advertise their services in the Philippines. You can check their website to learn more about them at http://www.worldwidemarkets.com. I checked the site and there si no mentioned of minimum(for now I have to dig deeper in their site). Also you can choose Filipino as the language of the site so guess they are aggressively approaching the Pinoy investor.

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