Understanding the risks in Forex trading

To trade, or not to trade? Many are reluctant to involve in Forex trading because of its ‘risks’. Generally speaking, there are risks everywhere in our life. Factories may malfunction, customer may not walk-in if you open a shop, stock market may crush, and if you are employed you may get fired during company downsizing. There are risks everywhere! The important issue here is how you learn and maintain your risk. So if you are considering participating in Forex market, you should learn managing the risk involved, instead of being terrified.

Referent from : http://www.golearnforex.net

The advantages of Forex market are:

Round-the-clock trading access: the ability to trade for 24 hours a day;

Liquidity: the market works with a huge money and gives the customers complete freedom to open or close their position of different volume;

Leverage: an ability to use leverage. It decreases requirements to the sum of the initial deposit (margin trade). So in case you deposit 10 000 USD into your account you'd have an opportunity to work with 1 000 000 USD (leverage 1:100);

Objectivity: no exterior regulated structures, so the currency's rate is establishing in accordance with current supply and demand on the market;

Globality: everyone can become a market participant irrespective to the living place, as trading requires only your skills and Internet access.
At present mostly all the operations on the market are conducting only to obtain profit. With the development of Internet and other means of communication this sector of the financial markets becomes more accessible and attractive for the investors of different levels

Common terms used in forex trading:

1. Bid: It is the price at which a buyer has offered to buy the currency.

2. Ask: It is the price at which a seller has offered to sell the currency.

3. Spread: It is the difference between the bid price and the ask price.

4. Intraday: Refers to all positions that are opened and closed at anytime during a normal trading day.

5. Overnight position: Refers to all positions that are active at the end of the trading day and are carried over to the next day for trading.

6. Long position: In a long position, the trader buys a currency at a particular price with the intention of selling for a higher price at a later date.

7. Short position: In a short position, the trader sells a currency anticipating that it will depreciate.

8. Limit order: A limit order is an order with restrictions in regard to the maximum price to be paid or the minimum price to be received.

9. Stop loss order: In a stop loss, an open position is automatically liquidated at a specified price. This strategy is used to limit losses


The forex market is frequently referred to as the inter-bank market because banks dominate it. However, in recent years the number of other market participants such as multinational corporations, money managers, and speculators has increased significantly, particularly so with the advent of the internet permitting trading on a 24 hour basis.

In the FX market there are multiple dealers whose business is to unite buyers and sellers. Each dealer has the ability and the authority to execute trades independently of each other. This structure is inherently competitive as traders are faced with a choice between a variety of firms with an equal ability to execute their trades.

Advantages of Forex Trading

Are you new to trade currency? Are you giving up due to your past trade? Get yourself to know the primitive advantages of Forex trading. And you are also essentially advised to refer to the risk-bearing.

• Two Way Market where traders can trade in Bull and Bear market
• Margin Trading 100 : 1 leverage
• Low Account Balance for entry
• Can work in odd work due to 24 hours a day from Sunday night to Friday noon
• Flexible transaction sizes
• Very dynamic and trendy
• No worry about bad fills due to price gaps
• Can practice at online simulation until you become expert

What are the Secrets in Forex Trading?

More than 100 million people in the world are looking for profitable investment. We love talking investment because this is the energyless but high profit gain business. Forex Trading is the world's largest financial market with an estimated daily average turnover between $1.5 trillion to $2.5 trillion that we cannot doubt. If we want to make profit from this investment, there are some related knowledges that we definitely need to know.

• Use Future data to justify market trend.
• Pivot Program shows entry & exit signals.
• Familiar Chart Patterns and Trend lines.
• how big dogs are doing?
• euro vs USD Tricks.
• Be Smart to Filter Various Currency pairs.
• Confident to Control Up and Down Trendy.
• Avoid Pitfalls of Dumb money.
• Intelligent stop loss strategies implementation.
• AIME methodology
• History is your tips.
• Hedge currency Trades .

Are you can be a milionare with forex ?

Absolutely yes. Imagine you can get minimum about $100 to $200 in one day. This is enough for me, but forex can give you more then that. Calculate your income,suppose you get $100 per day multiply by 20 day, you can get $2000 per month. wow, it is good enough for me. :-)

What is Forex ?

The foreign exchange (currency or forex or FX) market exists wherever one currency is traded for another. It is the largest financial market in the world, and includes trading between large banks, currency speculators, multinational corporations, governments, and other financial markets and institutions. The average daily trade in the global forex markets currently exceeds US$ 2–2.5 trillion . Retail traders (individuals) are a small fraction of this market and may only participate indirectly through brokers or banks