What is Forex?
Forex, short for Foreign Exchange, is the world’s largest financial market. So much so that a single day of trading amounts to trillions of dollars. Yes, you heard that right. Trillions.
In layman terms, Forex is the trade of currencies. The relative value of a currency fluctuates on a day to day basis. If the value of currency in your possession suddenly skyrocket you can make good fortune out of it by selling it at the right time. On the other hand, if it takes a nosedive as a reaction to a major political, economic or climate disaster, you will be at loss in no time.
Forex trading is decentralized means there is no central hub where the trading takes place. Rather it involves millions, if not billions, of electronic devices conducting trade electronically five days a week.
Is Forex trading a lottery?
As mentioned earlier, Forex trading is a market with very high liquidity. The currency rates fluctuate constantly. If it had been at random, it would have been right to call Forex a lottery. But it is not.
Forex trading is highly susceptible to passing events. With robust training and long-term experience, one can learn how events are heading towards a particular direction. For instance, if you are following world politics and came to know of a major upheaval in a country in Latin america, let’s suppose the beginning of an arm conflict, you can easily predict that the ensuing events will result in massive currency fluctuation that you can exploit to your advantage.
So, Forex trading is not a lottery.
How to get started with forex trading?
There are two things you need access to if you want to get started with Forex trading: a forex trading course and forex trading app. Mostly, one comes with the other in a package.
Online courses are on the rise these days, but only a few of them are as good as the first-hand training of a seasoned trader. If you are planning to buy an online course, you should be watchful of the following three aspects:
- Financial topics are usually dry and boring and not everyone has the capacity to digest them easily. That is why the training needs to be fun and engaging.
- Make sure that the course is fully exhaustive and the instructor has the technical competency to teach it.
- The trainer should be professional when it comes to presenting the topics. The course must follow a logical order, should be up to date and is free of technical mistakes.
The knowledge you will acquire via training courses needs to be applied to preserve it for a long time. Forex trading apps provide you with the opportunity. Though the web application has been in the market for a long, mobile trading apps are on the rise, and have taken the lead, in the last few years. Mobile apps have a definite advantage, they can be readily accessed and keep you up to date.
A few of many advantages the best forex trading apps offer include:
- You will be regularly updated about all the recent major developments in the market.
- Data is presented in an intuitive format for you so you can easily digest it, and make sound financial decisions.
- You will be able to place orders on the go, almost instantly.
- A few apps will update regular insights about successful trading strategies to add to your knowledge.
- They keep a track record of your portfolio and feed you critical signals to make informed decisions.
- Most of them are not limited to currencies. Rather they provide trading for stocks, digital currencies and commodities.
This article is not the most exhaustive guide to Forex Trading, but it might help you get started. As a beginner, your two utmost concerns should be selecting the right app and the right course, especially if you are planning to learn on-line.