WHAT IS FOREX?

 FOREX DEFINITIONAL

The Foreign Exchange, also referred to as the “Forex" or “FX” market is the largest financial market in the world, with a volume about $1.95 trillion a day. If you compare that to the $25 billion a day volume that the New York Stock Exchange trades, you see how giant the Foreign Exchange really is. It's actually more than three times the total amount of the stocks and futures markets combined!

There are many strategies out there, and nearly as many expensive software packages that promise to automatically place a trade for you when the time is right. But the strategy I have fine tuned can make you seriously good money without the need for you to pay out on expensive software, books and big impersonal hyped up seminars

How are you going to actually make money?

Simply put, with Forex spread trading you.re going to stake money on the exchange rate of the EURO (EUR) against the US DOLLAR (USD) and the GREAT BRITISH POUND (GBP) against the US DOLLAR (USD). For every point or pip, as it’s technically called, that the price moves, you profit from the amount you.ve staked multiplied by the number of pips it moves.

Why two pairs of currencies? Some experienced traders will trade only one pair of currencies and decide which announcements are going to move which currency pair. That.s fine when you are really knowledgeable but it.s not something I.d recommend for new traders.

So if GBP/USD is 1.9386 and it rises to 1.9396 then it will have moved 10 pips.

For example:

 There is a US announcement due at 1.00pm GMT. Just before 1.00 pm you set up a £10 sell order on GBP/USD so that if the price moves down a certain amount your order will get triggered and go live. At the same time you set up a £10 buy order on EUR/USD so that if the price moves up a certain amount your order will get triggered and go live. Both orders have tight stop losses set.

Demo Trading

You can open a demo account for free with most Forex brokers. This account has the full capabilities of a "real" account including live market rates, access to real-time

market analysis, and the ability to execute trades off streaming prices. Why is it free you ask? It’s because they want you to learn the ins and outs of their trading platform so you’ll fall in love with it and deposit real money. The demo account allows you to learn about the Forex markets and test your trading skills without any risk.

YOU SHOULD DEMO TRADE FOR AT LEAST 2 MONTHS BEFORE YOU EVEN THINK ABOUT PUTTING REAL MONEY ON THE LINE. I REPEAT, YOU SHOULD DEMO TRADE FOR AT LEAST 2 MONTHS BEFORE YOU EVEN THINK ABOUT PUTTING REAL MONEY ON THE LINE.

TOPEX