Trading 101 The Basics

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Trading 101: The Basics, What is FOREX? how forex works?

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Trading 101: The Basics No matter what your approach to trading is there is a basic knowledge that you need to have in order to navigate your way through easily and professionally. After all when trading youll be dealing with money. It could be your money or why not other peoples money in case you want to become a proprietary trader. So its clearly a lot of responsibility. And you dont want to lose it all just because you didnt know how to set your parameters before entering a trade. Thats where "Trading 101" comes in. This series will be comprised of articles about all the basics from A to Z. There are multiple reasons why people skip this part. First of all it can be tedious. But dont try to convince yourself that its not important or its not that hard to understand it can be done later.

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Its true It can be done later. Heck It can be done anytime. But it will hinder your performance and come back to bite you again and again till you decide to rip that Band-Aid off. Also if you want to take advantage of this subject and for it to serve your interests in the most effective way treat it seriously. Try to take notes and apply what you learned on a regular basis. It will save you so much time and do nothing but help you along the way. “Give me six hours to chop down a tree and I will spend the first four sharpening the ax.” Abraham Lincoln • The first order of business: What is Forex As human beings we have difficulty comprehending and wrapping our heads around very big numbers that deal with magnitudes outside of human perception. So when I tell you that the Forex market is the largest and most liquid financial market in the world with trillions of dollars’ worth of transactions each day you should take a minute to let that sink in. Its impossibly huge. The Foreign Exchange FOREX is where currencies are traded against one another. Operating 24 hours a day 5 days a week it dwarfs other markets like the New York Stock Exchange and the London Stock Exchange. In April 2019 the FOREX market had a daily trading volume of 6.6 trillion against 22.4 billion for the NYSE and

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just 18.9 billion for the London Stock Exchange. Its a difference by orders of magnitude. Everybody with no exceptions has participated in this exchange at some point of their lives. Each time you need to purchase goods from another country or travel you need to trade currencies in order to have smooth and fast transactions. Countries do the same on a large scale. That exchange doesnt always happen with the same exchange rate. Its different every time. To see this in full action you can visit any bank currency exchange booth or airport and go up to the counter. Its the screen displaying different exchange rates for different currencies. In the next article of this series we will talk about the instruments traded and know exactly what they are and how they are used. Visit this link: https://financialmarketjunky.blogspot.com/

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