1. Never you risk more than 10% of the capital that we have in a transaction.
2. Have a trading strategy before entering the market. You know before the transaction where you will make profit / loss accept.
3. Never trade without protective order to stop the loss.
Continue reading Forex golden rules
The platforms via internet allows to trade live for most brokers. Global forex trading is possible with the development of the technology. A great advantage of the forex market is Margin trading, which is basically trading with borrowed money from trader. Since you can only make profits by selling thousands of units of currencies it is impossible for traders to trade without margin trading. For example, if you want to make profits from the small fluctuations of the pound (GBP) you’ll need to buy 1 lot (which is about equal to 100,000 US dollars) and then wait for it to go up. When the pound goes up a little forex traders sell it and profit from the small gap between the original price and the sell price. Forex traders use small amount of money such as $1,000-$5,000 to invest and reap profits. If the pound decrease will lose money.
Basically this is forex – manipulating earnings on the small fluctuations. Some would say that forex is similar to gambling with money on money but the truth is that there are many forex trading systems that predict within a minute error range the future fluctuations of foreign currencies.
Of course you heard about Forex. Lot of people speaks about the money involved on trading with forex market. Foreign Exchange Currency Trading (Forex) is the exchange money market between different countries and traders. The value of one country’s currency is constantly changing against the value of another country’s currency. Forex traders makes money through the demand on buying and selling currencies on the foreign exchange market.
For example you should pay a supplier in Italy and you need Euro (named EUR in Forex) but you live in USA and you have US Dollars. You must go to your Bank and change Dollars for Euros. Because you are a small buyer you must pay for Euros what they ask. If you must pay a large amount like 100.000 or 500.ooo Euro the game is changing quickly. You can trade and obtain a smaller price for each Euro you want to buy.
This is happen every second on Forex.
