This is the first part in a series of four articles, aimed towards the more experienced traders. You should already be familiar with the basics of the forex market before reading this. A short exposition about the forex is added though, for those of you who need to brush up some basic knowledge in terminology.
The FOREX, or Foreign Exchange Market, is the largest and most liquid market of all financial markets on earth. About 3 Trillion dollars change hands on a daily basis. It is only in the forex where opportunity exists for making as much as ten grand a day.
Obviously, when I say opportunity, I do so due to the fact that a lot of rookie traders dive right into the market, knowing absolutely nothing about it. No less than 90 percent will pretty much lose all of their initial capital. The forex is a very profitable yet a particularly perilous one for the inexperienced trader, so learn it and its basics before you begin investing your currency.
The forex became so alluring thanks to its single greatest advantage - you don’t have to produce or advertise anything, or carry any expenses which derive from doing so. It is all about trading currency with the option of make a profit, based on knowledge and experience. One other plus of the forex market is “leverage”. Nothing like other markets, in the forex you can trade at colossal leverages, up to an astounding 200:1 ratio. Using extremely high leverage is very risky. Qualified traders know to limit their margin up to 10:1. As only around five percent of forex traders actually generate revenue and approximately one percent becomes rich trading forex, you are advised to act with great caution. If all of this made little to no sense to you, go back and read some more basic material before reading the next parts of this article.
Andrew Keynes is a long time FOREX trader. A husband and father of two, Keynes has proven himself and built his reputation as an expert to the Foreign Exchange market over many years.
He has successfully served as financial advisor to several large hedge funds and groups and is nowadays busy pushing his latest effort,
www.forexblogs.net,a place on the web where economists from all over the globe congregate and share their trading and investing experiences with each other.
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