As you browse the net you may come across thousands of offers inviting you to join schemes to earn money online. There are various kinds of schemes such as, type from home, survey submission, sending emails, and various other forms of freelancing jobs. The average individual who wishes to make some money online is confused.
There is one more avenue to earn money online and if you are not aware of it, it is Forex Trading Online. A novice trader does not know the basics of Forex Trading, so he or she has to set out to explore the process of trading, and mind you it is not a cake walk. The Forex Traders need to browse the net for months and study the various websites introducing the forex trading, study the various books, and understand the basic functions of the Forex Market and has to go through various processes to understand fully its structure and function to trade it successfully.
The flow chart of the process, beginning from novice forex Trader to becoming a successful trader goes like this:
In the beginning, the trader needs to study the fundamental concepts of currencies and how it affects the economy of a country and they are well aware that you need to compare the currencies of two countries if you wish to convert currency of one country to the other country and the exchange ratio is judged. They need to study how the currency increases and decrease in value relative to the other corresponding currency. These kind of pairs of currencies of two countries are known as currency pairs.
Then the next stage is to study about charts. These are pictorial graphs formed by the movement of the currency pairs and its study is known as technical analysis. There are different kinds of charts like candle stick charts, line charts and the bar charts, trend lines, support lines, moving averages, fibonacci series and Elliot wave theory. The trader has to study the chart of the selected currency pairs for at least a month or two, so that he may come to know that each currency pair has got its own footprints and favorite time for maximum movement. There are also concepts known as chart patterns, which predict the likely direction of movement of currency pair. These formations are named as triangles, flags, double top, saucer and cup etc. The trader also needs to understand the chart of the selected pair in various time intervals.
Then the currency trader needs to join a Forex Broker Company for demo trading. In demo trading the broker provides you with free trading terminal and with real time charts, which are same as the ones provided to live traders who are trading with real money. The trader should demo trade for at least a month or two so that he or she may become familiar with the trading terminal, charts and indicators. These indicators are derived mathematically from the real time data of the currency pair and are drawn as graphs over the track of the currency pair and they act as guides to predict with high probability the direction of the movement. Mind you it is probability and not accurate.
After demo trading for two to three months and if the trader is eager to know more, then they can buy some Forex Books and study the various trading systems and courses and during demo trading practice these systems and courses and has to select the one which the trader is comfortable with and which is fetching more profits.
| The Author Santhosh Yadav traded Forex Extensively and herein he brings his experience of the journey of Trading Forex Online from the position of a Novice Trader to a Successful one, in the form of a story of Four Traders in their Quest to Trade Forex at http://trade-forex-online.blogspot.com |
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