Risk and benefit Trading Forex

Forex is still widely regarded as one of the way-quick-rich.
In fact, Forex trading involves substantial risk enough so that the necessary skills before engaging in forex trading estate.
Here are some of the risks of online forex trading:

Forex trading is possible to lose up to 100% of your capital.
Forex trading including kategory high risk-high gain, it is very important basic introduction to help you identify the type of market it from all sides.
From there you just decide whether to remain interested waterfall, or retreat from the world trading before becoming `sorry` and late.

Another risk facing is the fact that most of the traders have failed in the initial phase of the plunge in the world of forex.
It is more caused by mental and psychological factors that become barriers such as; tend to be greedy, `blind ‘when it comes to money, lack of discipline factors, and others.

The number of `rogue` seekers benefit of colleagues who are new to the trading world becomes another important issue.
Do a little googling and we will find hundreds of sites that promise several hundred percent definite advantage IF you buy a trading system / EA / circuitry join their group.
Maybe rough, but most of these sites lie just to sell it.

There is no / least educational institutions / specialized training to make your forex trading will depend largely on self-discipline to systematically learn forex trading, which is a challenge in itself.

Forex trading gives us the opportunity to make a profit at any time, 24 hours a day and 5 days a week.
would also mean loss allows us anytime.

The advantages of forex trading:

Small initial capital.
many online forex brokers allow you to start trading even with an initial capital of $ 1 only.

Not tied to hours worked.
For 24 hours, 5 days a week, you can do forex transactions.

Unlimited profit potential.
If accompanied with skill and mental ability sufficient, forex trading gives you the possibility to earn unlimited profit.

Yan learning a lot of information spread across the internet.
you need to do is sift the information and use it for your study materials.

Then how to minimize the risk faced?

The following are some ways that might help colleagues in minimizing the risks faced.

Know first `you` battlefield.

Learn more about what is forex market, forex market how to work, who did it, and what the role of the market actors, as well as other factors that could affect the forex market.
The material on this fellow can get in this forum, or by googling.

Get to know the technicalities of forex trading practice

Identify and familiarize themselves with peers technical factors in the trading activities of daily trading platform used in each (MT4, Novativa streamster, VTtrader, etc.) such as opening positions, closing positions, set stop losses and take profit, set the lot
used, and others.

Do not rush

Just because the read / buy / get one technique 1000% daily profit, or buy 1 EA definitely do not profit directly hurry open a real account and trading plunge.
see the first step and if you feel it is OK, use a demo account first facility to test in the real environment.

Use `trading strategies / trading systems` thorough.

Discipline trading activities with colleagues using / preparing a series circuit Standard operation procedure is clear and can be used as a handle.
This not only includes the number of Take profit and stop loss, but also includes the value of the lot is used, financial management

Platform Trading

In the process of trading transaction, you will need a software / platform forex trading as a means to analyze and also make transactions.
By means of this software, you can do the transaction buy, sell, close the transaction, pending orders storing, analyzing currency movements, and others.
There are many types of trading platform provided by a forex broker online.
Some types of software / trading platform commonly used by retail traders, among others, ninja trader, streamster, TradeStation, ctrader, widetrader, metatrader, and others.

Metatrader trading platform is the most popular and widely used by retail traders like us, and are also provided by most online forex brokers available today.
This is because of its easy to learn, quick to master, available at many brokers, and provide enough facilities.
In addition, also can use the MetaTrader indicators, scripts and Expert Advisors (trading robots) as a tool in forex trading.
Currently the latest version of MetaTrader is the MetaTrader 5 (MT5), but that version is still widely used version of Metatrader 4 (MT4).

We encourage you to study the use of MetaTrader 4 trading software, because this is the most likely trading software that you will use later.

 

MetaTrader is the most widely used software in the Forex trading and other commodity that can be run on a computer or gadget with the base operating system Windows, Android and Iphone.
Please pay more some of the advantages of MetaTrader software below:

MetaTrader does not take up a lot of bandwidth, so Walalupun Internet network is minimal then the MetaTrader software to keep it running smoothly.

MetaTrader software is very user friendly so anyone can use it easily.
This software can also be run simultaneously on a computer screen or multiple different operating systems on the same trading account.

Another advantage of MetaTrader software is can be added and modified by a script / program to create Custom Indicators and use Automatic Trading (EA – Expert Advisor) that can be run in accordance with the desired trading plan.
To take advantage of these features you have to master the technique of programming language C + +.

MetaTrader Metaquotes provided by companies that are widely used by the broker / Forex brokers in the world.

Forex market participants

In general, forex market participants consisted of various groups, namely:

1.Multinational Enterprises.

2.Banks and financial institutions.

3.Broker (Broker)

4.Business Performer (importers, exporters)

5.Government (Central Bank, Commercial Bank).

6.Large Speculators (Big Boys like George Soros, Warren Buffet and others).

7.Player / small traders (retailers as we are dealing with limited funds)

Multinational companies to participate in the forex market because they require foreign currency for their trade in other countries.
Banks and financial institutions are the most active participants and be one of the greatest actors of forex transactions.
Interbank market is a market where large banks trade among themselves and determine the value of the currency in the market which is called supply and demand.

Broker is a company that is a facilitator between buyers and sellers in buying or selling foreign exchange.

Business Performer (exporters and importers) is the largest client of the bank concerned with foreign exchange trading where they need currency as a medium of exchange in world trade.

Central Bank (government) actors is that forex trading has a huge effect.
The central bank is an arm of the government which has the goal to run monetary policy.
Central banks often intervene in the market economy country for the purpose.

Introduction Forex Market

Unlike the traditional market, because here who traded currencies are the market (where the merchants / traders buying and selling) is called the forex market.
Who are the perpetrators of the forex market?
very diverse: can a bank (main), large companies, countries, institutions, speculators, etc..

Given that the culprit will define and global / international, market / forex trading is seen to be very attractive, why?
Because it makes the forex market became the largest financial market (4T $ / day), and very liquid (can sell and buy at such rate in the market regardless of the amount).
Plus, this makes the forex market is open 24 non-stop, so we can trade anytime, we adjust our spare time.

Unlike traditional markets, the forex market has no physical location in particular, the majority of today’s nearly done through an electronic network of Commerce.
So the transaction process can happen quickly and in large quantities anyway.
With the development of Internet technology (electronics) it will be very easy for new people untukmelakukan online forex trading.

The purpose of Forex Trading

Market conditions and the price moves in the forex market is very dynamic, it can change at any time quickly, in response to the events either event the economy, politics, war, disaster, etc..
Especially for countries with advanced economies and strong, there is little sensitive information, then the price of its currency could move up and down.

This is seen by traders as an opportunity and a chance to do the trade.
So simple forex trading goal is to achieve a profit or gain of magnitude.

Forex Trading Opportunities

Internet has made a lot of revolution in world trade, as well as a very strong influence in the world of forex trading.
With the internet, it is now the forex can be done by anyone.
If in the past could only be done by the big players (banks, state institutions) now, with more and more popping and online retail forex broker, you and I can trade forex online with ease and with little capital.
Even to try trading with simulation is also very easy that is by trading with a demo account facility of the broker.

Forex Risk

Forex like a double-edged sword.
With forex can make us rich quick, but the opposite can also instantly mengikikis depleted our capital.
Do you consider forex as an investment or as a regular trade, clear that forex has a high risk factor.
So really understand the risks in forex and do not let one step.

Conclusion

  • Special trade forex currency of the country.
  • Forex currency market is the largest and most liquid in the world.
  • Forex can be done anytime, 24 hours a day Monday s / d Friday

– Beginning of the New Zealand and Australian market hours 5:00 to 14:00 pm,
– Then to the Asian markets of Japan, Hong Kong and Singapore at 7:00 a.m. to 16:00 pm
– Then to the European markets of Germany and the UK hours 1:00 p.m. to 22:00 pm
– Up to the American market hours of 20:00 to 5:00 (the next day).

  • With the recent developments (the Internet), then forex trading can be done online (anywhere).
  • Forex can quickly make you rich or poor.
  • Because of this risk too much, you should be wise and fully understand the forex completely before you decided to go inside.

 

What is a Forex Trading ?

Forex is derived from the word ” Foreign Exchange ” , which means foreign currency exchange , or the exchange of one currency to another , the initial objective was to payments abroad.

Can also be interpreted that forex trading is the bottom line currency exchange activities with each other continuously for profit .Forex trading is the activity Buy or Sell currencies continuously and consistently for profit .
With a trading volume of $ 5 trillion per day , Forex has been named as one of the largest financial market in the world .
example benefit from rising prices :

Price or exchange rate GBP / USD is now 1.5000
This means that 1 GBP = 1.5 USD
(1 GBP (pounds) if swapped into USD (dollars) to $ 1.5)
Now I have a capital amount of $ 150.
I predict that the exchange rate of GBP / USD Up
What I do is BUY GBP / USD or buy GBP using USD, in the sense of exchanging my dollars into pounds.
After the exchange, $ 150 I changed to 100 pounds.
After an hour the exchange rate GBP / USD rose to 1.7000
This means that 1 GBP = 1.7 USD
I need to do now is to SELL GBP / USD or exchange returned 100 Pounds which I hold to dollar.
Having swapped my 100 pounds into $ 170 (100 x 1.7)
BUY and SELL transactions within an interval of one hour of my capital was changed from $ 150 to $ 170, meaning I earn a profit of $ 20.

Note :  small and large gains in influence leverage and lot.

if forex trading can provide a big advantage?
Can all.
but on the other hand, forex trading can also lead to large losses as well.
not only a loss of money, but also a loss of invaluable time wasted.
Hence, the learning and knowledge of the forex became an absolute requirement that you must live first.

Please follow the series of articles in bamsbung.com to get information on how to learn forex practical, easily understood and consistent profits.