As i promised in the initial posts and my welcome message, i said i will be posting tips that will help you achieve financial freedom and extra income. Definitely, one of the best ways to make money on the internet is through online forex trading. By now, i know everybody knows what forex trading is (the currency market where a major eight currency pairs are being traded and some other minor currency pairs exist).
As i said earlier, forex trading is one of the best ways to make money on the internet, but there are a lot of factors to consider before investing your hard earned money into forex. A lot of people have had their entire investments wiped out overnight as a result of inappropriate trading strategies and some as a result of abject ignorance. As with every business, it is good and very important to know the intricacies and even the tiniest details of your intended business venture so that you can make the best out of it.
In this blog series, i will, as much as possible try to give out a few tips, advice and materials that would help you succeed if you are interested in trading Forex. Earlier in My welcome post, i made it publicly clear that i am no staunch financial services expert (I mean, i graduated with a B.Sc in Microbiology and we didn't take any classes in business or finance) BUT i managed to turn my $100 forex account to $4,987.50 within a space of 1 year. I didn't a Masters degree in forex trading to achieve that feat. Basically what you need is a decisive mindset, a desire and urge to succeed and latest, uptodate information on whatever business you are involved in.
To the main issue in this series, there are a lot of things you need to know about forex and although i cannot tell you everything in one post and i definitely dont have all the information up here in my head, i will tell you the ones i can and you'll have to get the rest from a list of materials i'll list out here. So Basically follow the few steps below and let's see
1. What is your financial background
Although your financial background is not a serious basis for trading forex, a few things should be considered. If you are retired (better still, just retired) and your retirement fund is still fresh in your pockets, you are very good to go. Also, if you have a lot of cash that wont really bother you if you loose it, you have no problem. Although, if you fall into the first category, you have to be very careful, because with old age comes increased risk of hypertension and cardiac diseases. But if you are managing the little you have and you probably dont have more than a few hundred dollars left from your salary after paying your bills, you have to be very careful. NOW, DONT GET ME WRONG. I dont mean the first set of people shouldnt be careful at all and i dont mean that the second set of people shouldn't trade forex at all, but whatever category you fall in, you have to know how and when to play the right card. Precisely, caution and discipline are two attributes that must not be lacking in any potential forex trader. Because of the risks associated with forex some brokers will advice you not to trade forex if you are a retiree or if you dont have a relatively good annual income. I have a friend who was told by his broker that he didn't fall in the right category to trad forex when he started, but today, he has quit his paid job to face forex trading squarely. So, your financial background is not an impediment to trading but a reason for you to be careful.
2. Understand Forex and All its Intricacies
Usually most people tell you only the juicy aspects of forex, but dont tell you the other careful details you need to watch out for. It's true that the forex market is the largest financial market in the world with a market value of over 2 trillion dollars, it is traded 24 hours a day throughout the five working days of the week, and it offers huge potential for raking in huge profits. But it is true that forex is a zero sum game and whatever is gained by one trader is lost by another trader. It is also true that leverage can make or mar your entire investment. And it is also true that Forex carries a lot of risk. You have to understand all the terminologies and ensure that you have a fundamental knowledge of the most profitable currency pairs and when what trades best.
am sorry i'm running out of time, but just keep your fingers crossed, i'll be back with the rest soon
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