The word trading is as old as mankind himself and is still present in nowadays world. Although it comes in different forms and processes, trading carries the same principle that it did thousands of years ago, which is the exchange of a particular good for another.
The origins of trading come from a process named bartering. The barter process is simply an exchange of goods. In the early times, one would trade an apple, for argument sake, to get a potato in return.
In present time, bartering has evolved and though the principals are the same, trading one good for another is made easy by the use of money. Money is the medium that makes trading possible and without this piece of paper no goods and services may be acquired.
Trading in the world we live in has taken a new proportion which involves more than the exchange of goods and services only. The century that we live in has seen the birth of currency traders. They are the one who buys/sells the currency of one country to that of another country.
The market which is being referred to is the Forex market. The biggest most traded market on the planet. With a colossal US$ 3.5 Trillion traded every single day, this value is more significant when compared to all the other financial markets put together.
Millions of dollars are traded by major corporations daily. These companies form part of the wholesale market and comprises of banks and big hedge funds. They have the power to move the market from one direction to the other due to the large volume and amount of money traded on every single position taken. Those moves usually results in currencies going up and down in any single day thus changing the quotes of each currency throughout the day. The change in quotes most likely relates to profit made or loss incurred.
The forex market tends to be more attractive than most of the existing markets on the planet. The reason being is because the forex market is a 24-hour open market. A normal trading day starts in Sydney, then Tokyo, Europe, London and ends up in New York City which is the last market to close for the day.
The most traded pair on the currency market is the major which is made up of the EUR/USD, GBP/USD, USD/CHF and USD/JPY. The Yen pairs and the Commodity pairs come second on the list. These pairs are the GBP/JPY, EUR/JPY, AUD/USD, USD/CAD and NZD/USD.
My experience with trading begun when I was still in university, I had no clue of the dynamics of the market at his stage. Basically I was quite confused to how this process, which is the buying and selling of currencies, actually worked. After some readings, it all made sense. What I found is that not only could money help acquire goods and services but it could also be used to buy or sell another currency in some other countries.
Buying and selling currencies are undertaken by people known as forex traders. They simply take advantage of a falling currency or the appreciation of another currency to make money. A decent amount of money can be made using the technique of buying and selling currencies. Savvy forex traders make a great living doing just that.
It is very easy in the actual world we live to get involved in currency trading.
To get started, all you need is:
- A decent computer
- Acces to Internet
- Some money as start-up capital
- A broker
Looks quite easy in hind-sight, right?
Education is something that you will need to consider and I strongly recommend that you do educate yourself before jumping in this amazing forex adventure. With 5 years of trading under my belt I still learn new things every single day. Be humble, disciplined and teachable, do not try to make millions in a matter of days. Have a plan and a solid goal setting as this will pave your way to success. - 23309
The origins of trading come from a process named bartering. The barter process is simply an exchange of goods. In the early times, one would trade an apple, for argument sake, to get a potato in return.
In present time, bartering has evolved and though the principals are the same, trading one good for another is made easy by the use of money. Money is the medium that makes trading possible and without this piece of paper no goods and services may be acquired.
Trading in the world we live in has taken a new proportion which involves more than the exchange of goods and services only. The century that we live in has seen the birth of currency traders. They are the one who buys/sells the currency of one country to that of another country.
The market which is being referred to is the Forex market. The biggest most traded market on the planet. With a colossal US$ 3.5 Trillion traded every single day, this value is more significant when compared to all the other financial markets put together.
Millions of dollars are traded by major corporations daily. These companies form part of the wholesale market and comprises of banks and big hedge funds. They have the power to move the market from one direction to the other due to the large volume and amount of money traded on every single position taken. Those moves usually results in currencies going up and down in any single day thus changing the quotes of each currency throughout the day. The change in quotes most likely relates to profit made or loss incurred.
The forex market tends to be more attractive than most of the existing markets on the planet. The reason being is because the forex market is a 24-hour open market. A normal trading day starts in Sydney, then Tokyo, Europe, London and ends up in New York City which is the last market to close for the day.
The most traded pair on the currency market is the major which is made up of the EUR/USD, GBP/USD, USD/CHF and USD/JPY. The Yen pairs and the Commodity pairs come second on the list. These pairs are the GBP/JPY, EUR/JPY, AUD/USD, USD/CAD and NZD/USD.
My experience with trading begun when I was still in university, I had no clue of the dynamics of the market at his stage. Basically I was quite confused to how this process, which is the buying and selling of currencies, actually worked. After some readings, it all made sense. What I found is that not only could money help acquire goods and services but it could also be used to buy or sell another currency in some other countries.
Buying and selling currencies are undertaken by people known as forex traders. They simply take advantage of a falling currency or the appreciation of another currency to make money. A decent amount of money can be made using the technique of buying and selling currencies. Savvy forex traders make a great living doing just that.
It is very easy in the actual world we live to get involved in currency trading.
To get started, all you need is:
- A decent computer
- Acces to Internet
- Some money as start-up capital
- A broker
Looks quite easy in hind-sight, right?
Education is something that you will need to consider and I strongly recommend that you do educate yourself before jumping in this amazing forex adventure. With 5 years of trading under my belt I still learn new things every single day. Be humble, disciplined and teachable, do not try to make millions in a matter of days. Have a plan and a solid goal setting as this will pave your way to success. - 23309
About the Author:
Want to find out more about forex trading, then visit Ash Naeck's site on how to choose the best Forex education for your needs!
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