Introduction to Forex (Currency Trading Market)

Probably most of the people in the internet had heard Forex (currency trading) and some of them even tried to trade themselves with demo accounts in forex brokers with virtual money. The main principle of trading: you buy when currency pair rate is rising and sell when it is going  downwards. For this reason every trader must analyse forex market and try to forecast the currency pair trend (moving direction) in order to make correct position and make profit. Forex is the only investment in the internet where your money is safe and only you are responsible for your profits (or looses).

You may think that it is very easy when you will get 10-30% of profit in the first day at forex demo account but don't even try to invest real money before you learn main forex theory and have at least 2 months of experience in demo account. One of the main barriers for profitable investment is psychological barrier. In the demo account you fell no emotions when you loose 2000 or 3000 $ in one day because in most cases after a few days you are in profit again (of course it depend on your skills in market analysis), however with the real money you can begin to panic any time when you loose a lot of money, at this point you may suffer from a fear to start a new position (new trade) and you will not have a logical thinking. That's why you need to learn all basics and create your own trading strategy in order to feel safe and guaranteed when you will invest real money - you will not have any psychological barriers for successful trading. Trading discipline is your investment guarantee and, of course, it is recommended to trade only with ~2% of your account balance in order to keep your account high enough to stand up against market fluctuation.

Of course the main investment rule - invest as much as you can afford to loose.

Read the rest of this article