I want to know about Forex trading (just for my knowledge )

I do not understand how 95 % people lose money ?

is there any given time that you can hold the currency ? or can you hold it for a long time(like 1 year ) (like stocks ) and sell it ?

if some one starts with $10 ,what is the maximum that he can earn from ONE DAY (assume that he is the best forex trader in the world) :P ?

Answer
95% of Forex traders lose because they are amateurs with more hopes than skills. They play against seasoned professionals who have been doing this for a living over many years, equipped with the latest in news feeds, computers and algorithms.

What makes you think amateurs have much chance of winning against them? there will be one or two here & there, but the vast majority will lose most or everything they invest.

The $10 you mention is a rounding error in the trades of the professionals. You will need several thousand dollars to even start.

Best to go and borrow some books on Forex from your library, and read them. You will be far more informed, and in a better position to succeed.

How do I choose a forex trading system?

I am new to the forex market and am looking for a good trading system that actually works. Can someone point me in the right direction please?

Answer
Forex market or Foreign Currency Exchange market is one of the biggest trading market in the world with over USD 1.3 Trillion traded in a day. It is drawing attention ever since it is open to Online trading. Forex trading can be very profitable if you take your time to do a proper research, understanding various options and choose a system that works for you. The most used Forex trading system may not be the most suitable for your needs.

There are many different kinds of Forex Trading Systems and you need to know a few facts as mentioned below, before choosing and funding a system.

1. Testimonials: Is there anyone out there who is trying to sell a system and show you testimonials from the people who actually didn't like the system? Highly unlikely. You should do proper research before indulging into a system that is completely new to you.

2. Impression: Do not be over impressed from high percentage of winning forex trades because a 90-95% winning trades with with average value $10 gets you $900. If you have 10% losing trade and unfortunately average losing trade is $200, then your account is reduced by $2000. This is an explanation that people often tend to ignore while doing Forex Trading or any trading in general.

3. Profit: Do you want to work with a Forex Trading system that breaks even? Why? If you keep the money in your home, you will still break even, then why take all the hassles of setting up an Forex Trading account and do all the work. Really speaking, you should always do some research on how profitable a particular trading system is?

4. Drawdown: The maximum drawdown of trading system is defined as the greatest peak-to-valley drawdown in a trading systemâs equity. Maximum drawdown gives us a measure of the survivability of the trading system.

5. Time to profit: The actual time it takes to achieve the results with a particular trading system. You should plan to have a long and profitable relationship with your trading system.

Try to use a trading system that let you open a Demo account so that you can practice and learn about Forex Trading without risking any money.

I have tried many of these systems in my quest to simplify my trading experience. I personally have found FreedomRocks to be the system that has worked for me. I have found no bad information on this system from anybody that has actually used it. I have found many skeptics and bashers but nothing from those that have actually tried at least the free trial they offer.

Below are a couple of links that may that I have found in my travels around the web:
http://www.yourforexinvestor.com
http://www.babypips.com

To your success,
Brandon Wells
bjwells@yourforexinvestor.com
877-773-5345