Proven Forex Trading Methods Rock

What is FOREX investment? This 5 letter word though terse and short has so many expectations and illusion wound around it

. It is a never, ever land for most where happily ever after is not just a fairy tale ending. Here are some proven forex trading methods.

Getting to the Basics, FOREX stands for FOReign EXchange, and is the simultaneous buying of one currency and selling of another. The implications of jumping into this largest and most liquid market in the world, where Bulls and Bears are the only thing that one may find can be a question of risk or opportunity. The Big question is: How can I make money here??? Bingo, and here comes the answer. For a start, it needs hours of study on the market and dedicated tuning of the senses to the announcements in the market that can have the greatest impact on your money.

If that is a turn off, then I suggest you need to read in between the lines. Obviously, there should be a catch why it is the world's largest market. One being that it is all day unlike the Stock market, it is 98% online and is a Spot market, meaning that trading is made immediately. USD, EUR, JPY, GBP, CHF, CAD, AUD are among the major currencies traded upon. There are many proven forex trading methods that you can learn.

When venturing in the world of FOREX, one should know the margin trading. FOREX is basically traded on margin. To be able to trade the major currencies, Saxo Bank asks for a 1% margin deposit, meaning to be able to do a trade of one million dollars, one must need 10,000 US Dollars for security purposes. Other things you need to know to be successful in FOREX are the following:

Foreign Currency Market is not centralized and this being the spotlight; is run all over the world. As one cannot play a Cricket match with a Hockey Stick, it goes without saying that you need be at par with the lingos. This is primarily a concern as one might have just read through the first lines assuming that Bulls and Bears are just a funky way of writing.

With reference to the FOREX terminologies, Bulls, implies to buy and you would have guessed Bears implies to sell. An idea of the factors that affect this kind of trading is both economic and financial. Inflation has among the greatest impacts as when one inflation rate of a nation rises relative to others, its currency tends to fall in value. Similarly, a nation that goes for reducing its inflation rate usually sees a rise in the value of the currency. In short, if you are selling a currency whose interest rates are high then you might experience a high exchange value for the same.

Playing small is another myth that needs to thrown out of the window since the market always gives way to fighters. Play small. Win small. Fight Big. Earn Big. The biggest fish of them all is that some currencies always give high returns and others are moderates. Any Sensible broker who has seen the end of the tunnel will tell his tale of day he reached the sky. Currencies are a representation of an economy and when you trade you see yourself contributing to that economy and in effect yours too. We are after all a global village. Next time you will see yourself break some more myths about proven forex trading methods.

by: Pete Miguel.

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