subject: How To Invest In The Forex Market [print this page] The Forex market is the surest form of investment and the most ancient of the world, and you do not need to have big reservations of capital or investment to begin with this kind of lifestyle.
Surely we have been investigating on how Forex's market works and doubt arises as if actually you can or not gain money in trading the Forex market. Many pages in Internet affirm that it is very easy to gain money on the foreign exchange market and assure you that you can become rich overnight, but this is not like that, I will make this clear with the following statement:
The Forex Market allows daily hundreds of opportunities to gain small and big quantities of money, but this can be achieved if you receive a suitable education and realize practices in an account demo before entering to the market with real money. This is like any work that you can recover in life, but you need to prepare yourself theoretically and practically to be successful.
You can gain a lot of money in Forex, if you apply strategies and analyzes technically every movement of the market, skills that can manage with a specialized education. Someone was asking if to gain money he needs from a great investment, but the truth is that he does not need big quantities of money, everything depends on his capacity of investment.
Types of accounts:
1. Micro account: $ is opened by less than 2000.
2. Mini account: $ is opened from 2001 up to 20000 $.
3. Normal account: $ is opened by more than 20000.
For only $250.00 or $300.00, an individual investor can open a mini-account that he can control. Practically commissions do not exist.
Forex's mini-accounts are especially beneficial for someone who newly begins in the trading currency.
On having opened a mini-account, an investor begins his education on the trends of the market and the specific strategies that it helps to explore often discouraging world of the investments.
We will initiate making clear that it is the Order of Market: This one is the most basic type of order and commonly used. An order of market is an order to buy or to sell to the existing price of purchase or sale. When you want to join a position on the market rapidly, with the best available price this instant, you will have to always place an order of market (Market Order). The disadvantage of an order of market is that if the markets move rapidly, there exists often the possibility that his order enters with a price different from the one that you wanted or it saw initially. But to explain to him of more extensive form see later the different types of orders.
The types of orders that you can use when you operate are the following ones:
Market Order (order of Market): It is an order placed to begin or to go out from the market to the current price of the market, can be the "Ask" the "Bid" or the price quoted at the moment of the execution. It can be at the cost of sale or purchase price.
Limit Order (Order of to assure profit): It is an order placed to begin or to go out from the market to an exact price or a better price, without displacement. It is when an operator establishes the price to the one that wants to close his position and to assure the resultant profit.
Stop sign loss Order (Order of stop to stop the loss) An order placed to begin or to go out from the market to an exact price which, once reaching this price, executes like market order. This is in use in case the market is not in the foreseen direction. In other words, the operator establishes the maximum quantity (in terms of pips) that is ready to lose in certain operation.
To take profit (Take Profit): This one is another order that can close his position automatically for you and to be named to take profit (Take Profit, sometimes was abridging TP). An order take profit assures that his position should be closed if his objective price is reached while you are far from his computer, or on a market of rapid movement where the price can reach to the objective price too rapidly to react.
For a better comprehension of the topic see the following example: a position was opened at the cost of 1.1502 (Order of Purchase). According to the order of stop of loss, the position will be closed always and when the price falls 1.1491. In agreement with the order of Limit, the position will be closed always and when the price comes to 1.1507. All that you establish it when you initiate the operation and can leave the computer while already it has established his limits, etc.
