Forex is currency trading which, in a nut shell, is a way to make a living from the movement in the value of a countries currency against another countries currency. We trade currency pairs such as the British Pound and the American Dollar or the Euro and the American Dollar and we can make our money by either buying or selling our chosen pair.
There are many ways to trade Forex. Popular ways include the use of indicators such as pivot points whereby a trader looks at historical movements in certain pairs and uses this information to predict when a certain pair may move in a certain direction. Trading this way often entails the trader being in a trade for quite a long time - an hour or so to, in some cases days or longer.
A second popular way is for a "professional" to send out buy and sell advice to you via email and other electronic communication. The trader then reacts on the news.
A third way is for an investor to send the amount he wishes to invest to a company / computer programme and allow them to invest on the trader's behalf. There is no risk to the company / computer programme although this is not the way it is marketed.
A fourth way is scalping or reactive trading. A trader will wait patiently until a movement in the currency occurs which he deems quick enough to cover the brokers spread and for the trader to make a few pips. Trades tend to take less than a minute and profits are paid instantly.
I opted to learn the latter because I didn't want to have the stress of leaving trades on for long periods of time. To me that would lead to stress and stress tends to lead to bad decisions. Additionally, to me the thought of having to wait for someone else to tell me when to buy or sell a currency seems bizarre - what happens if that individual retires? Or makes an error? Why can't that individual train me to do what they do?
The thought of sending my hard earned money to some entity to trade for me does not seem to me to be a business. What skills do I learn from that? And what happens if / when my money is lost?
Scalping a few pips here and there by following a tried and trusted system is without a doubt the simplest and safest system I have found to trade. As an individual working from home I wanted a system that, once I had learnt it, would give me financial freedom with a lifestyle that did not tie me to a computer all day.
For more information about FOREX training please visit FOREX Training Course -A site aimed at helping you understand FOREX trading.
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