I’m sure quite a number of you have heard a little bit about Forex trading from either your friends or your colleagues. However, the truth is that very few of us actually know what it is or how it works.
Being a typical Singaporean, we can be a little lazy to find out more or we might be too afraid to ask around lest we look ignorant.
So allow Wealthmastery.sg take you through a step by step explanation of Forex Trading!
What is Forex Trading?
Forex trading is basically the art of buying and selling foreign currency for PROFIT.
Sounds complicated? Not really…
Before any of you go overseas, I’m sure you would typically make a trip down to a money changer to exchange your Singapore dollar for the other country’s currency, may it be Malaysian Ringgit (MYR), Indonesian Rupiah (IDR) or even the American Dollar (USD).
By doing so, you have actually just traded Forex!
It’s really that simple!
Why do people like to trade Forex?
You get to decide your own working hours.
Did you know that the Forex market is an online market that is open 24 hours, 5 days a week?
So you can work as and when you want, as and where you like!
Many people trade Forex because they want to enjoy the flexibility of working at their own pace.
Want to spend more time with your loved ones? Don’t want to work on Mondays? If you trade Forex, you get to do exactly just that!
- You can potentially earn HUGE PROFITS.
Unlike stocks, it is very easy for Forex traders to earn 1% a day in the volatile Forex markets.
It is not impossible for you to double up your capital within a year if you strictly follow a trading system that works.
You can MAKE MONEY, regardless whether the markets go up or down.
Forex trading is one of the rare financial instruments that give you the chance to profit even as markets head downwards. This means that you can still make money during a financial crisis!
How do you get started trading Forex?
First, you need to open a trading account with a reputable Forex broker so that you can start placing your trades.
A Forex broker is the company that buys and sells Forex on your behalf. So when you open an account with them, they will usually ask you to put in a certain amount of money to fund that account.
And that’s all there is to it. You can start trading Forex once your account has been set up!
BONUS: How to increase your trading returns!
One of the fastest ways to increase your returns is to find a trading mentor that will help guide you through the process.
Having a mentor not only shortens your learning curve drastically, it also helps you to earn more money as a good mentor can point out and help you avoid the common mistakes traders make.
Another way to ensure trading success is to find a trading system that works for you. Many professional traders create a system that works for them and then follow it strictly. In fact, most of them found out that they usually lose money when they make a trade outside of their system!
While it is not possible for beginners to create their own trading system, they are able to copy the proven trading systems that work for other full timer traders and use it as their own.
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