Mark Zuckerman - Forex Trading 2021: Beginners Guide To Stock Charts, Technical Analysis, Risk Management And Trading Psychology 3 Books In 1

What exactly is the Forex or the foreign exchange market? How can you trade it and what are some of the basics that a beginner might need when first starting out in the world of currency trading? Well, Forex has a lot of different names. Sometimes you'll hear foreign exchange market, sometimes you'll hear the currency market or sometimes you'll hear FX. There are all different names that the Forex market has but essentially Forex is the biggest name for it but you'll hear FX and currency market as well. The Forex market is essentially a place where traders, investors or businesses can trade or speculate or exchange currency for one another. For example you've probably heard of the Euro the Pound the US dollar and in the currency market you can trade or speculate on the direction of future price movements of these different currencies. Another great aspect of the currency market is it's open 24/7 as retail traders are brokers will allow you to trade for the most part; five or six days out of the week but the currency market is never fully asleep. Currency is always being exchanged around the world, whenever you buy, whenever you sell, whenever you trade for a different currency when you go to another country. Compared to the other major markets of the world such as the stock market, the bond market or the cryptocurrency market, these markets are tiny compared to the massive size of the foreign exchange market. Trillions of dollars literally are sold or bought or moved around in the currency market every single day as this is the world's largest market by far. In the currency market different currencies are being traded versus one another. For example the Euro versus the US dollar is a speculation where you can take an idea of whether or not you think the Euro will go up or down relative to the US dollar. It's like a numerator and a denominator almost, except they're next to each other and you're just speculating on the overall direction of one currency relative to another. When youre trading in the currency market, you can either be buying or selling or shorting. Selling and shorting is really the same thing. Essentially you think that if you are buying you think that the market is going up and if you're shorting the idea is that you expect the market to go down from the current price or wherever you enter. Additionally, there are take profits and stop losses. A take profit is essentially a level on the chart or an order that you can place on your broker on your platform to say at this point I'd like to get out of the trading for a profit if the market moves from your entry to that level. For example, if we took the Euro/USD, let's say that you decide that you want to buy the Euro/USD. Well if you buy the Euro/USD you want the price to make a movement in your favour to the upside because we're buying. And if price comes up to your take profit order which you can set whenever you open the trade, you could be out of the trade for a profit wherever you set that level. Similarly, there's as a stop loss on the other side of things. If you'd like to set a stop loss you can set a level on the chart at which if the price goes against you, going back to our Euro/USD example, if price is going down on the Euro/USD, that means that the Euro is devaluing relative to the US dollar which is appreciating and at some point you could set a stop loss where the level will get you out of the trade for a loss, but we'll try to control the further losses on the account. Why the currencies change in value? Well there are many reasons as to why a currency pair may go up or down but one of the main reasons are for example; news, economics of a particular country, there's different banks and institutions that are moving price around as well as interest rates and all sorts of other factors including technical analysis which is essentially the idea that you can trade based on significant levels and the price of the chart to make profits. A lot of times when all these traders are putting in their different reasons for buying or selling, it causes the market to move and sometimes we see a trend up or a trend down. Currency trading for retail traders are the new guys on the block. With a small fish in a big pond. This is a new concept for retail traders to be involved in trading Forex. The reason that Forex traders now are more readily available to retail or small people with not a lot of money, unless you have millions of millions of dollars up until the last 10-15 years ago, it's been very hard to get involved as a smaller investor. But now with the invention of leverage and the possibilities through using a broker, we can access the foreign exchange market. You might ask what does that mean? Well, essentially the currencies that we're looking at really aren't moving a massive amount. It's not like they're moving 20 percent today such as a stock could potentially do or cryptocurrency does. In fact they move very little so we would need to have a ton of currency units or millions of US dollars or Euros or whatever we're trading to see a significant change of the account value. That's where leverage comes in which is where a brokerage allows you to leverage your small amount of money into a bigger amount of money so that you can trade as if you were trading with much more money. For example if you were trading with a 100,000 US dollars on a price movement, well now a price movement on your $500 or $1,000 account is going to be significant. Forex trading is something that is very exciting to a lot of people and for good reason. There is good money to be made trading the currency market.