8605 single-format-standard wp-custom-logo wpex-theme wpex-responsive full-width-main-layout no-composer wpex-live-site content-full-width post-in-category-business post-in-category-personal-development post-in-category-success-wellness has-breadcrumbs sidebar-widget-icons hasnt-overlay-header wpex-mobile-toggle-menu-icon_buttons has-mobile-menu being good at forex-js-composer js-comp-ver-4. For the last 6 months, I’ve been a forex trader.
It was also one of the most difficult endeavors I ever started, in terms of energy and effort. What follows is a little list of all the things I learned during these 6 months. But before diving into it, a few introductory words, for those who have no idea what forex trading is in the first place. If you do have an idea about forex trading, you can safely skip the next two paragraphs.
A Primer Forex means foreign exchange rates, and forex trading means buying or selling foreign currencies in pairs. If public companies have shares that you can freely buy and sell on the market, then countries have currencies. That’s the easiest way to understand a currency: it’s the value of that country in pretty much the same way a share represents the value of a company. Now, a company share value is an expression of what people agree to pay for it, based on a number of criteria: company performance, brand power, rumors and so on.
Consequently, a country currency is evaluated against another country currency, based upon a set of criteria too: the economical situation of both countries, political news, media manipulation and so on. In forex, you trade pairs, like selling EUR and getting USD, for instance. I only traded majors, crosses have usually a lower liquidity. Very simply put, forex trading means you can do only 2 things with these pairs: you can either buy some, or sell some. Using whatever capital you want to invest, that is. If you buy, then you expect the price of your pair to be bigger in a certain amount of time. If you sell, then you expect the price of your currency to drop.