The idea has been perpetuated by smooth marketers and catchy slogans that any who has a computer can make big money trading the forex
. The ads make it seem like it is possible to make a lot of money very quickly. This is not true.
It takes months of study and application of that knowledge in order to make money or even understand the market. That is what is involved when one wants to learn forex trading. The foreign exchange market is known as forex. All of the transactions are done electronically, so this means there is no store or building where you can go buy currency. It has no physical location. It is open 24 hours a day from Sunday to Friday. The currencies that are traded the most are the dollar, the yen and the pound. This is because the economies of these countries are better than the rest of the countries in the world.
Currencies are sold in pairs. Each pair moves relative to the other currencies and this is how trades are determined. The fluctuations of the pairs determine if you buy or sell it. This is also referred to going long or going short.
There are many things to learn to trade the forex. It can take months or years to grasp the information. The most important thing to remember is that you have to study the information and be able to apply it. The more you know the better you will be; however, you will not always have successful trades. The target is to have an 80% success rate. This means that you will lose money 20% of the time.
With the invention of the Internet, the best forex market is now open to anyone that has a computer. In the past, only the large banks were able to trade.