Tag Archives: Beginners guide to Forex trading

How to Trade Forex for a Living-While Working Your 9 to 5 Job!

Many people want to learn to trade Forex while still working their 9 to 5 jobs

But the challenge is to find a reliable trading system that is tried and tested to produce winning trades on a consistent basis.

The other challenge is to find a reliable Forex trading mentor who not only interested in selling you his trading strategy for the sake of making a quick cash from you, but someone who really interested in helping you out.

In this article I want to share with you my real live experience about how I went about finding a good forex trading mentor who can help you learn how to trade the currency markets in order to earn some extra cash while still working your 9 to 5 job.

The first thing you need to know is that forex trading is a very serious business just like any bricks and mortar business out there, and therefore you need to put everything in place in order to become successful while still doing it.

The first thing you need to do is to invest your hard earn cash, in paying for the services of a forex trading mentor.

The reason why this is so important is because you will learn from an active trader, who will guide you to avoid some the pitfall associated with trading the foreign currency market, and you will also be in a company of other learner traders and therefore you will share some experience.

Whether you like it or not, you will still make some trading mistakes and you will lose some money when trading the forex markets, but what is important is that you need to learn how to manage your loses with strong money managements rules, so that you do not run a risk of blowing all your trading account.

In fact most guru traders suggest that, you need to only risk between 1% and 2% of your trading capital for each and every trade you open.

The only challenge for enlisting the services of a Trading mentor is that, they are expensive and therefore the next option available to you is to pay for the services of a Forex Trading Signal provider.

A signal provider is also a fulltime Forex Professional Trader, who will send you some trading Signal telling you which currency trading pair to buy, where to take your profit and where to put your stop loss level in order to protect your open position and not to put all your trading account size at risk.

The trading signals can be send to you via an e-mail, a cell phone message or even some trading Signals providers will give you logging details so that you can login into a private members website and just follow them there.

This is very good indeed because you not only learn from the Forex trading Signal provider but you also learn from other fellow student traders as well, which will really make your trading live very easy indeed.

Now the last option to you can explore if you are still serious about following you dream of becoming a part-time forex trader in order to earn some extra cash while still working your 9 to 5 job to pay your bills is to buy some online eBooks courses and learn how to trade yourself through trial and error.

There are many Forex trading courses out there, which are designed for traders of different experience levels, from beginner traders, Intermediate to advance traders. But one thing I need to warn you about is that, majority on new traders think that in order to earn some forex pips on a continuous basis, they need to buy a 100% No loss trading system.

If you can fall onto this trap not only will you waste you valuable time,money and energy jumping from one Forex trading strategy to the other, but you will never become a true trader because you will end up being a more confused trader who does not have his or her own identity.

Now hear this, majority of people who sells forex trading strategies are traders who fail to make money out of trading the live currency market, and end up as Forex marketers who earn a living by selling you Forex Trading eBooks.

The reason why this is so is because 95% of people who learn how to trade the currency markets fail and end up quitting after blowing all their trading Capital.

In closing I like to tell you that in order to become a successful forex trader, who earn a living from trading the markets part-time or full-time you need to master the following three things:

  • Become a discipline trader with strong money management rules.
  • Have a reliable Forex currency trading strategy.
  • Have Trading Edge by trading only deliberately tradable markets in the direction of major trend.

I will elaborate more in my next article on the above mentioned points, so that you can know how to give yourself a trading edge, please come back next week to read my full article whereby I will be revealing in details how to trade like a real guru, even if you have never trade before and give yourself a trading edge.

Thank you for reading this Blog post I hope you have learned one or two things, from it and use the knowledge shared her to help you become a better trader.

From: Patrick Sekhoto

Http://www.patricksekhotoblog.com/

Learn How to Trade Forex For a Living!

So I guess you too want to learn how to trade Forex, in order to make a living out of it, and therefore promise you that you have come to the right place.You do not have to be a regular trader to take advantage of the lucrative Forex market. Any time you travel and exchange money you take part in the foreign exchange market(Forex market).In fact Forex trading is the giant of finance, dwarfing all the other capital markets in the industry.

Despite its overwhelming market size, the concepts of trading currencies are fairly simple. Here are some basics that you need to understand.Go through them as you “learn Forex Trading Online,learn How to trade Forex”
Eight Majors

The forex market is not like the stock market where you will find millions of stocks to choose from. In the forex market you only need to be keen on the 8 major economies and then analyze which one is likely to provide the best overvalued or undervalued opportunities. Here are the 8 main countries that play a big role in the currency market and you should keep a keen eye on them as you “learn Forex Trading Online,learn How to trade Forex”

  • United States
  • Euro-zone (the ones to watch are France, Italy,German and Spain)
  • Japan
  • United Kingdom
  • Switzerland
  • Canada
  • Australia
  • India

These 8 economies have the most sophisticated and largest financial markets in the whole world. By concentrating on the 8 countries, you can take advantage of earning any interest on the most liquid and credit worthy instruments in the financial market. Economic data is usually released from these 8 countries on a daily basis allowing you to stay informed and on top of your game when it come to analyzing the health of each economy.

Other important aspects that will help you “learn Forex Trading Online,learn How to trade Forex”

Yield and Return

When it comes to learning how trade Forex for a living, another key issue you should remember is that yield usually drives return. Whenever you are trading in the Forex exchange spot market, keep in mind that you will be selling and buying two different underlying currencies. All the currencies are usually quoted in pairs since each currency is valued in comparison to another. For instance, If the USD/EUR is quoted as 1.3500 which means it takes about $1,35 to buy one euro.

In each transaction you make, you will be simultaneously purchasing one currency and then selling another. This means you will be using the proceeds from the currency that you sold to buy the currency that you are now buying. Additionally, each currency in the world comes with an interest rate attached. It is your obligation to pay the interest rate of the currency you have sold when you earn interest on the one you have bought.

Leveraging Returns.

The currency trading market also offers tremendous leverage – usually as high as 100:1 – This means an investor can control assets worth $10000 with as little as $100. Nevertheless keep in mind that leverage is sometimes a double edged sword: It can earn you massive profits when you are right, but it can also generate heavy losses if you are wrong.

Carry Trades

Currency value is never stationary, and it is this feature that gave birth to carry trade, one of the most popular Forex trading strategy. In this strategy, a user hopes to earn not only the interest, but also looks for their potential to appreciate in value.

Getting to Know Interest Rates

Another important aspect of this trade that you should keep in mind as you “learn Forex Trading Online,learn How to trade Forex” is knowing where the interests are headed.This requires some understanding of the country’s underlying economics. Countries that are doing well with solid growth rates to curb inflation are likely to raise rates to curb growth and inflation. On the contrary, countries that are having difficult economic times ranging from a full recession to a slowdown in demand are likely to reduce interest rates.

The Bottom Line

Forex trading is now accessible by many people than ever before thanks to availability of electronic trading networks. This large financial market offers a number of opportunities for investors who are patient and take their time to understand it as they learn how to minimize the risk of failure.

Thank you for visiting my blog and reading my article, and if you have anything to add or want me to blog about a particular topic, do not hesitate to leave me a comment below.