Forex Lessons
Forex training classes are a great way to learn to trade forex. They are basically a method of getting a good grounding of knowledge from which to springboard a successful trading career. In this article, let me give you your first lesson of forex.
The Big Global Picture
Forex is how much you can sell one currency for to buy another – just like when you go on vacation.
But what affects forex prices is the big global picture. It is not just the economic picture but anything that affects a country.
So, forex prices will also be influenced by war, the threat of war, emigration patterns, the weather and much more. This is what makes forex so fascinating, because it is influenced by pretty much everything. Forex Lessons
Buyers And Sellers
If you look at a forex chart for today, it will look like a bunch of waves, moving up and down. What causes these up and down movements is the pulling and pushing between buyers and sellers of a currency.
At any given time, there can be more people wanting to buy or there can be more people wanting to sell.
Just understand that the price movements, although influenced by global events, are actually drive by individuals in the market. Forex Lessons
Forex Is Not Gambling!
In gambling, whether you are betting on a sportsbook or at a casino, the house has a huge edge against you. It makes it very, very difficult to consistently win.
In forex, the commissions or fees that you pay to trade are minuscule in comparison. This means that, so long as you are disciplined, it is not difficult to make consistent profits.
The only obstacle to that is yourself…
Discipline
After you learn the basics, the most important thing that you need is discipline. Never trade on a “gut feel” and don’t risk more money if you’re losing. This is the mentality of a gambler soon to lose all his money.
Instead, you should trade based on good decisions, based on logic. Remove emotion from the equation as much as you can. Always practice good risk management and don’t risk too much on a single trade.
These are the traits that make the difference between a winning and a losing trader. Forex Lessons