How does currency trading like Forex work exactly?
Tuesday, January 7, 2014
, Posted by Ryanita at 11:59 AM
Evan M
I understand that you buy currency in "lots" and depending if they go up or down in value you make in profit or loss.
I just don't understand why the currencies are paired like "EUR/GBP".
Can someone help me understand the actual process taking place when people trade currency?
Answer
In simple word:
EURGBP = you have / use EUR to buy GBP, the exchange rates is 1 EUR = xxx GBP
In simple word:
EURGBP = you have / use EUR to buy GBP, the exchange rates is 1 EUR = xxx GBP
why does the Forex market always go in the opposite direction of a trade I place?
dany g
I've tried trading the Forex market. 99% of the trades go the opposite of the trade I make. The odds are extreme if this is coincidence. The stock either goes up, down or sideways, but the moment I go into it, it goes in the opposite direction. Is this rigged?
Answer
It's not rigged, but you need a strategy. You can find a good strategy at: http://comefollowme.zulutrade.com
And you need a non-dealing-desk broker. Brokers with dealing desks can sometimes make the chart move against you, though that's kind of rare. A great broker is: http://www.etoro.com/B66_A29675_TClick.aspx
If you do these two things, you will succeed:
a) follow my first link to get yourself a good strategy, they are free, and the historical results you see are NOT backtests - those strategies have all had to build their history with that website one trade at a time in real time.
b) follow my second link to get yourself a non-dealing-desk broker. The broker link I gave also has some good strategies with it, which you can use if you wish. Either way, get a strategy.
c) trade a small percentage of your account. If your account is $500 or less, do not ever open more than a few micro lots at a time. If you want to open just one mini lot (a mini lot is 0.1 standard lots) then you will need TEN TIMES as much money to be in your account. You can blow your account in just 3 trades if you over trade, EVEN though you had a good strategy! I've seen it happen. Nothing worse than to have a good strategy, but you blow your account immediately from extreme over-trading, and then you have to sit there for the next few months and watch that strategy do really well... without you.
It's not rigged, but you need a strategy. You can find a good strategy at: http://comefollowme.zulutrade.com
And you need a non-dealing-desk broker. Brokers with dealing desks can sometimes make the chart move against you, though that's kind of rare. A great broker is: http://www.etoro.com/B66_A29675_TClick.aspx
If you do these two things, you will succeed:
a) follow my first link to get yourself a good strategy, they are free, and the historical results you see are NOT backtests - those strategies have all had to build their history with that website one trade at a time in real time.
b) follow my second link to get yourself a non-dealing-desk broker. The broker link I gave also has some good strategies with it, which you can use if you wish. Either way, get a strategy.
c) trade a small percentage of your account. If your account is $500 or less, do not ever open more than a few micro lots at a time. If you want to open just one mini lot (a mini lot is 0.1 standard lots) then you will need TEN TIMES as much money to be in your account. You can blow your account in just 3 trades if you over trade, EVEN though you had a good strategy! I've seen it happen. Nothing worse than to have a good strategy, but you blow your account immediately from extreme over-trading, and then you have to sit there for the next few months and watch that strategy do really well... without you.
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