Learn the essentials of Forex Trading - Even the experts start somewhere!

Forex Trading can be a mystery even for experts. One thing is clear, if you want to have a chance to trade profitably you have to learn the basics.

Remember to start off small, then grow as your success grows! Keep in the back of your mind that almost anybody has to lose sometime. The winners in Forex Trading are those who win most of the time, whether that be 'the big one' infrequently or lots of consistent small wins.

There are people flying around in expensive jets without the money for their next refuel, and there are those looking to buy their next executive plaything. Then of course there's the teenager down the street working on his first million and grandma who mysteriously just bought a new car. So watch your head, mind your wallet and be keep in your thoughts that this Forex trading stuff is not a game to be taken lightly unless you know how to play!

Do it right and Forex Trading can buy you almost anything, even if you start out with just enough bucks to buy your first e-book on the subject. Get it wrong... well, the big boys use big calculators!

Forex Trading can be a mystery even for experts. One thing is clear, if you want to have a chance to trade profitably you have to learn the basics.

So where do you start to learn about Forex Trading? There are hundreds of websites, e-books and tutorials dedicated to the subject. For example http://www.learn-anything.com/Forex/Forex.htm fulfils a function and offers great resources and books that can help get you started.

A number of the big online trading houses offer 'trial' accounts where you get to play with 'dummy-money' and see actual results over the trial period. When I tried it, I lost my shirt, but then, I didn't do any reading and to be fair, I had in the back of my mind all the time that it wasn't real money I was betting with. I must say, for a while there, I was hooked and one day I'll give the matter serious attention (when I feel brave and have read enough!).

There are lots of variables involved with Forex that you need to keep in mind. In my own experiment, I realized that a good understanding of basic economic factors (like budget announcements) have a big affect on the markets. Seasonal changes, corporate announcements, big-mergers, war, terrorism are just some of other important variables that effect FOREX.

I figured that I could have increased my chances if I had a plan, one that included my target currencies and a thorough history of trading over the last five years or more. In my view, I would want to know when government budgets are announced, and have an understanding of previous movements at similar times. I would also want a clear history of exchange movements affected by top corporate announcements and world plot correlations with past profit announcements. You will also need to have a good 'feel' for the abnormal, like droughts, hurricanes, forest fires, violent episodes like war, massive infrastructure building projects etc. You also want to be alert to new discoveries that might bring prosperity on a national scale to your target currency, like oil finds, medical breakthroughs, even hosting the Olympics can be a major currency mover.

Remember that little movements mean massive sums of money have changed hands. Don't be fooled into thinking that a half pip isn't much. If you have a chance to make money - take it and move on to your next trade. Don't get all head-strong and greedy!

Above all, read what the experts have to say. Your best ever investment will be in your own understanding on the subject, so buy the books, read them all and then you will have a little of what you need to succeed in FOREX.

Learn about FOREX - Visit http://www.learn-anything.com/Forex/Forex.htm

FOREX explained (Part 4)

Cross rate - is used to convey the proportional values between the two currencies when it's not across the USD. For instance, if the quote is DEM/SFR at .7000, this means that on German Mark can be exchanged for only .7 Swiss Francs.

Going long - investing in the leading currency (for example USD/JPY = 1.243)

Going short - investing in the counter currency by saying it well get stronger against the base (leading) currency USD/JPY (for example USD/JPY = 1.243)

Lot (standard lot) - $100,000 contract value ($10,000 margin)

Mini Lot - $10,000 contract value ($1,000 margin)

Pips - the smallest rise of a change in price (1/10,000 of the value), i.e. EUR/USA price changes from 1.2834 to 1.2836 the price has changed by 2 pips.

Pivot points - is a datum that analysts use as an important tool to predict low (support) and high (resistance) points of the graph. If one of these points is broken, it is expected to move in the same direction (if in downward movement, then the market is bearish). Important! - Pivot points are short-term trend; they need to be recalculated each business day separately.

Currency shortcuts:

USD (U.S. dollars) GBP (United Kingdom pounds) JPY (Japanese yen) CAD (Canadian dollars) EUR (European euros) AUD (Australian dollars) CHF (Swiss francs) CNY (China Yuan) CZK (Czech koruna) HKD (Hong Kong dollar) HUF (Hungarian Forint) INR (Indian Rupee) KRW (Korean Won) MXN (Mexican Peso) PLN (Polish Zloty) SGD (Singapore dollar) ZAR (South African Rand) THB (Thai Baht)

Mia Milis is an independent trader and provides financial advice regarding foreign exchange to several institutions as well as private individuals. Being an Internet enthusiast, she has taken up to provide advice through her brilliant articles, and in recent years has also founded http://www.theforexblogger.com in order to provide a platform online traders worldwide could share experiences through. To learn more about the FOREX market, visit Mia's website at http://www.theforexblogger.com.

Mia Milis is an independent trader and provides financial advice regarding foreign exchange to several institutions as well as private individuals. Being an Internet enthusiast, she has taken up to provide advice through her brilliant articles, and in recent years has also founded theforexblogger.com in order to provide a platform online traders worldwide could share experiences through.Visit Mia's website at http://www.theforexblogger.com.

FOREX explained (Part 3):

Exchange Rate - When the value of one currency is expressed in the terms of another

Currency Pair - All currencies must be sold in pairs. There are two currencies that make up an exchange rate, so when one currency is bought, the other is simultaneously sold and vice versa.

Base Currency- This is the first currency in a pair (EUR/USD).

Counter Currency- This is the second currency used in a pair. The counter currency is also known as the "terms" currency (EUR/USD).

Sell Quote - This quote is normally displayed on the left side and represents the price that you can sell the base currency for. The sell quote is also referred to as the "bid" price. For instance: EUR/USD quotes 1.3200/03, and then you can sell one Euro for 1.3203 USD.

Buy Quote - This quote is normally displayed on the right side and represents the price that you can buy the base currency for. The buy quote is also referred to as the "ask" or "offer" price. For instance, EUR/USD quotes 1.3200/03, and then you can buy one Euro for 1.3203 USD

Resistance - A high point in a market chart that recurs regularly. Generally, it's the point where the market (or currency) will begin a downturn

Support - A low point in the market chart that recurs regularly. Generally, it's the point where the market (or currency) will begin to climb back up.

Gross domestic product (GDP) - represents the total market value of all goods and services that are normally produced within any given country

CPI - is the measure of the change in the prices of consumer goods in 200 categories

Mia Milis is an independent trader and provides financial advice regarding foreign exchange to several institutions as well as private individuals. Being an Internet enthusiast, she has taken up to provide advice through her brilliant articles, and in recent years has also founded http://www.theforexblogger.com in order to provide a platform online traders worldwide could share experiences through. To learn more about the FOREX market, visit Mia's website at http://www.theforexblogger.com.

Mia Milis is an independent trader and provides financial advice regarding foreign exchange to several institutions as well as private individuals. Being an Internet enthusiast, she has taken up to provide advice through her brilliant articles, and in recent years has also founded theforexblogger.com in order to provide a platform online traders worldwide could share experiences through. To learn more about the FOREX market, visit Mia's website.

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