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Forex Trading - a Beginner's Guide

by Trevor Kinden

No matter how hard it is to believe, but the fact is that the global forex trading market is far more lucrative than the equity market. The foreign exchange market is a place where currencies of different countries are bought and sold. The market is operational from 1970 when the concept of floating currencies and free exchange rates were introduced.

Though not as widely publicized as the equity market, the total value of global forex trading market goes far beyond $2 trillion daily. For more details, you can visit http://www.globalforextrading.org/.

One reason this market is so lucrative is that it is working all day and night. The market is open 24 hours a day, 7 days a week meaning those who want to trade can do so any time they want to unlike other markets that have restricting hours.

Secondly, in stock trading, you can trade with either the money you have or at best with double leverage if you open a margin account. But in forex trading, you can obtain a leverage of twenty to fifty times, and sometimes even up to a hundred times!

Leverage is an important aspect of the forex trading market. It gives a tremendous edge. But you really need to train yourself properly to use this tool to your own advantage. This kind of leverage can entice a lot of traders. However you must be careful.

The leverage can get wiped out in both the ways. If you are not careful about how you use the leverage, you can land up being totally bankrupt too. The tool can make you a millionaire. Simultaneously it can bring you down to ground as well. Details are available in http://www.globalforextrading.org/forextrading.html.

Considering the fact that the global forex trading market is very speculative in nature, you need to be very methodical and analytical to succeed. Moreover, you need to be strong enough to control your impulse and emotions. You need to think rationally and not act emotionally. Also, avoid experimenting too much.

If you need a strategy to play the global forex trading market with, go with ones that are tried and true. There are a number of Forex charts and graphs out there that can give you a good grasp on what the market does and how it reacts to various influences. There are also a lot of tutorials or training sessions that may give you additional information.

You need to keep educating and updating yourself. The more knowledge you soak in, the better position you are in to profit from the market. You can also set up a system of your own and stick to it. Try not to venture into margin trading in the initial stage. Beginners lose maximum money in the margin-trading scenario. You must keep in mind the volatile nature of the market before plunging in.

About the Author

Author Trevor Kinden is an knowledge and experienced Forex trader, with a large amount of knowledge and experience in Global Forex Trading. Click here to learn more about his Forex Trading site.

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