Day Forex Trading: This is a vast area that almost anyone can take advantage of. It used to only apply to the super rich, big corporations and banks. They are trading foreign currency..
Can you imagine this is a daily transaction volume of $1.2 trillion? That’s 1.2 trillion a day.
Now with the internet, you can also trade foreign currencies. With a mini account, you will control one tenth of the lot. For $100.00, at $100.00, your pip is worth $1.00. That way you understand that the point is the incremental movement of the currency.
Buy when you feel up, sell when you feel down. Of course, there are diagrams and various ways to illustrate what is going to happen. It just has to learn to get in and out, ups and downs.
There are many different currencies, but here are the main ones that are traded.
USA/YEN USA/Japan GBP/US Pound Sterling
USA/EURO USA/ Euro is European USA/CHF Swiss Franc
US/CAD US/Canada EURO/YEN
No commissions and fees, just lower dealer spreads. These spreads vary from trade to trade. 3 to 5 pips for major currency pairs. You’ll learn more about all of this when you get started. The smartest thing to do is to start with a demo account or what we call a paper account, where you can do anything as if it were real money, but it’s only on paper. So you can learn to go in and out, learn to read charts and how to understand fundamentals. These are world events that affect currencies.
There are many different strategies. Everyone has their own strengths and weaknesses. Each of them looks at the chart and its movements in a different way. Want some ideas? There’s scalping, surfing charts, sailing, and more. Sometimes you will win between 100 and 500 points. And then sometimes you lose points too. You never win all the time. But that’s where account management comes in. You learn to control your risk taking.
The biggest sin or failure usually happens when you let your emotions get involved. Even the big shots can sometimes let their emotions suffer. Most of the time it doesn’t work and will cost you.