The foreign exchange market is quite young. It started in the early 1970s after the United States dropped the gold standard and national currencies started to fluctuate widely. Before that, most nations had agreed to keep their currency values stable in relation to the U.S. dollar, making a Forex market unnecessary. Later banks realized that a profit could be made in "buying" currency when it was devalued and "selling" it after it strengthened, just like any other commodity.
The Forex market is dominated by international banks, government banks, investment banks, corporations, and hedge funds. Individual traders account for only about 2 percent of the market. In the Forex market, transactions are always done in pairs: when one currency is sold another one is bought.
The Forex market is the biggest market. It is much bigger than all other markets together.
Most of the Forex trading is done online, with traders using Forex charts, considering trends, and making decisions and there is not much interaction with other people, so many traders often spend time in Forex forums, chatting with other traders, learning, helping each other and sharing tips.
There are quite a few Forex-related forums and message boards on the Internet. Some are tied to brokerage firms, while others are just freestanding forums. Because Forex market is active twenty-four hours a day, you can usually find some on the forums at any time.
Discipline and a state of mind are very important in currency trading. People can win or lose lots of money quickly. Emotions like greed and impatience are very destructive in Forex trading. Trading can be also very addictive and can have stressful influence on traders' everyday life, so interaction on the forums can bring some help and support to stress out traders. Traders can cool down there and ask some questions to more experienced traders.
Traders can find some tips and learn strategies offered by their fellow traders.
There are some traders with more experience than the average trader on the forums, so the new traders have the opportunity to learn from them. Experienced traders like visiting the forums because it gives them a chance to share their experience with others.
Whether you are a new or an experienced trader it is important to visit often Forex forums, especially to cool down after losing some trades.
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