To confirm this, all you have to do is visit Google.com and search for the words “Forex” and “lose” to see that this is the general agreement online and everywhere else. With that said, if you’re new to currency trading and are looking for tips on how to get started, this article will give you the very basics; hence the title Currency Trading for Dummies…” Before we continue, it might pay to know that luck sometimes play a huge role in succeeding with currency trading.
Once you’re the game, you will sometimes notice a time when you make a reasonable amount of money and other times when you almost lose completely. During the winning period it may sometime mean you are having a lucky streak, not because you have suddenly become an expert forex player.
This means you should play the game smartly and be alert at all times. Unfortunately, most people are unwilling to admit their success is due to luck. They become so convinced they have a system that works only to lose a lot of money trying to refine it later. Anyway, currency trading is a lot like stock trading and all technical and fundamental analysis is approximately the same. Some people think the currency market is more difficult to trade than stock market but that depends on individuals.
However, with currency trading, you just have to know that currency pairs (e.g. US Dollar vs. British Pounds) always go up and down and you’ll be fine. Currency Trading Brokers: Usually, currency trading requires traders to used currency trading platforms or forex brokers. These brokers don’t charge commissions like stock brokers; instead they gain from spreads among the currencies and their pairs. This means you should always look for currency brokerage companies with smallest spread possible to maximise your profit.
Speaking of forex brokers with the smallest spreads, as a ‘Currency Trading for Dummies’ reader, one major advice you should always keep in mind is that there are forex scams flying all over the internet. Most forex websites are of questionable honesty and are designed solely to steal your money. For example you’ll come across website authors who claim they make so and so amount of money online. They’ll prompt you to visit their website and pay them some money in exchange for their success secret or tips. When you do, you’ll end up losing.