The Forex is the most liquid financial market in the world; maybe the most dense of opportunities. You do not need large capitals to start and make profits immediately, but only commitment, seriousness, self-sactifice and some specific knowledge.
The Forex is your path, if you aim to generate profit with online trading. To do so, you necessarily need to rely on resources that can support you, from the technical point of view and more. Forex example, you need a good broker, who allows you to operate with serenity and without worrying about spending considerable amounts for each operation.
A broker as Key To Markets. Only Key To Markets offers you the perfect trading environment, excellent economic conditions and support. All of them enhanced by the great availability of tools (apart from the Forex you can find indices, commodities, CFD and many more).
We advise you to open an account with the broker Key To Markets and take advantage of its professionality and the trading environment it has prepared for you.
What is Forex
The term Forex indicates the Foreign Exchange Market. In short, it is the currency exchange market. In the Forex, the currencies are exchanged as if they were “normal” assets, such as stocks or commodities. The aim, obviously, is to generate profit. Normally, by purchasing high and selling low, but there are also other methods.
Since the value of a currency is given by its cost in another currency, in the Forex trading is done with pairs. This is where the particular expressions originate, that you might have heard or read. For example “going long” on the euro dollar, or better on the EUR/USD, simply means purchasing euros selling dollars. Similarly, going short on the GBP/EUR (British pound sterling) means selling pounds and purchasing euros.
Apart from these particulars (currency=asset and trading in currency pairs), the Forex, in general, is subject to the same dynamics as the other markets.
Clearly, it presents some typical advantages, which allow it to stand out among the many other alternatives.
The advantages of the Forex
If the Forex is one of the most popular markets in the world, there is a reason. Actually, there are at least five.
Liquidity. The Forex is the most liquid market in the world. According to recent estimates, every day currencies are exchanged for about 5 thousand billion dollars. Just to give an idea, this amount is twice as much as the whole Italian public debt. The extreme liquidity, and consequently the great participation, guarantee to the trader almost certainty that all their orders will be regularly issued. Moreover it reduces the risk of manipulability of the market.
Volatility. The Forex, from this point of view, offers ideal conditions. In fact, it is a market which is volatile enough to allow good profits, but not too much to excessively disorientate the trader, and make serene and sensible investments impossible.
Low entry conditions. Clearly, the higher the capital the better it is; however, if you do not have large capitals, you could start doing trading anyway. The merit is the brokers’ who have lowered the entry conditions. Among them Key To Markets, which offers the best conditions to do trading without require prohibitive minimum initial deposits (on the contrary).
Readability. The Forex is a readable market. In first place, because the currencies are subject to the influence of data, events and specific dynamics, which are in turn analysed by experts. These analyses, often, are public or easy to find. In any case, you have at your disposal all the necessary material to do trading in the most scientific way possible.
Flexibility. Another peculiarity of the Forex: it is open 24/7, 5 days a week. Therefore, the opportunities are always there, even at night. Moreover, you can manage your activity the way you prefer, whenever you want and for as long as you deem necessary.
What you need to know before starting to trade in the Forex
However, the Forex is an alternative to consider seriously, it does not mean that it is accessible to everyone immediately. Before starting your adventure in the currency exchange market, you need to study the dynamics of the market, if you have not done it already. You can immediately do so downloading this ebook for free. Moreover, you need to develop awareness of some facts regarding the Forex. Here they are.
The Forex Trading has nothing to do with gambling. Trading in general, and the Forex in particular, have absolutely nothing to do with gambling. This is a prejudice that, however contradicted by the facts and totally extraneous to the experience of any trader, still remains. The Forex Trading is a serious activity of investment, which allows and actually encourages a sensible and rational scientific approach.
To succeed in the Forex you need commitment. Regardless of the amount of hours on a daily or weekly basis that you will dedicate to the Forex, you should know that you will have to commit in order to obtain results. Gaining profits can seem complicated at first, but it is accessible to everyone, assuming that the activity of investment in the Forex is taken with the sufficient seriousness.
What makes the difference is mainly the binomial: management of the capital-analysis. All the traders are called to protect the capital (through specific techniques) and analyse the market to understand in which direction the price will go in the more or less near future. Those who are able to perform well in these two stages, are already halfway.
What makes the difference is also the choice of trading tools. The trader is never alone, nor can be. They need to rely on tools that allow them to physically operate in the currency market. At least, a broker and a platform. One of the best brokers available is Key To Markets (you can open an account here). Currently, the most reliable platform is instead MetaTrader 4. We will talk about it in the following paragraphs.
The tools to make profits in the Forex
The trader has at their disposal a vast range of tools that can help them in their activity of investments. Some are literally mandatory, such as the already mentioned broker and platform, others are strongly recommended. Here is some information about the “toolbox” that traders should have along themselves.
Broker and platform
The broker is generally a company or anyway a structured entity that supports the trader in their activity of investment from the technical point of view and more. It provides the possibility to open an account, deposit money, invest with that money and accumulate capital. Obviously, it also allows withdrawals.
It takes care of issuing the orders from the technical point of view, surely with the most varied methodologies (there are for example ECN brokers and Market Maker brokers). It does all this at the cost of commissions or spreads. The brokers, therefore, have a “price”. The secret lies in choosing a broker that offers an excellent trading environment, but that at the same time is also convenient. Effectiveness-convenience is surely a rare binomial, but it is also what characterises the broker Key to Markets.
The platform, instead, is the software which allows the physical trading. It is the interface that allows the interaction with the broker and the market. In general, it allows the access to the graphs the analysis tools and more. The platform can be owned, if created by the same broker, or external. The best available platform is external and it is called MetaTrader 4.
The technical analysis
The technical analysis is that discipline which allows the study of the market, mainly through the graph, in order to identify the direction that the prices will take. This discipline, therefore, allows the scientific approach to trading, or better statistical. The specific tools that allow the technical analysis are called indicators and oscillators.
The technical analysis is often conducted together with the fundamental analysis, which is instead the discipline which allows the trader to know the future of the prices (obviously, with great approximation) by studying economic and political events. The basic principle is the following: certain events (called market mover) influence the prices always according to the same dynamics.
This is a tool to be handled with care, but potentially very profitable. Actually, rather than a tool, it is a way to conceive and conduct trading. It involves the use of software which replicate specific strategies and trade on behalf of the trader. Obviously, they need to be set up, but in general they can generate great profits if well managed. Moreover, they allow the overcoming of some physiological limits of normal trading. Click here to find out more.
Acronym of Virtual Private Server, they are – indeed – servers which literally displace the trader’s own activity of trading on the cloud, releasing from their own pc. They are very useful tools for at least two reasons. In first place, because they guarantee a very quick execution of the orders, an essential parametre for generate high profits. Secondly, because they guarantee an absolute stability, advantage that the use of a pc, the power network and internet connection cannot guarantee. Click here to find out more.