I'm Ready to Enter Forex Market

In the prior topic, we’ve already disscussed about the reason to invest in Forex. Now we’re going to disscuss about something you need to know before you start to trade. Please answer the questions below:

1. I'm a Beginner Trader
Why do you want to be a trader? What’s your trading goals? Of course, to make some money. Maybe it’s an opportunity to get financial freedom. Or maybe you are a trader and you wanna quit from your college or job because u’ve already been a trader and see probability of success here. Do u think it’s a right decision by being a forex trader? First I wanna tell you that we cannot predict the future and control the markets. Forex Market is too risky although we have enough knowledge and skill to reduce the risk (we can’t eliminate the risk). Have you answered the questions? I know it’s not easy. You should really find out the answer because it will influence your future much, and also your psychological while doing trading as well.

2. Money Management
Don’t invest money which will annoy your life. It means that if you lost that money, it won’t disturb your financial stability. Maybe you’ve already had a family, then don’t let it annoys the stability of your family financial. Don’t let it disturbs your job, your study and of course your family, unless you’ve got the success. we'll learn about that further later.

3. Do I Have Enough Knowledge?
Do you have enough knowledge to join forex trading? Absolutely, you can find in this blog.

4. My Trading Technic Have Been Completely Reliable

What technic will you use to gain profit? Obviously you can find here. The success key is you must take initial testing of technics that you will use. Choose demo account to do testing. Based on the experiences of many success traders, a certain technic only appropriate with certain pairs and certain setting. For a newbie, use broker who provides demo account, use knowledge and skill you have now, along with your technic to train for months before invest your money. It’s better to invest time to study than loss your money. I have heard so many loser trader stories because of their hurries, their lost their money. Their skills and knowledges are not adequate to do trading.

5. My Pips Journal
Arrange trading journey which include your trading activity plans. The plans consist of rules you have to obey, profit and loss you will gain. The idea is to watch over the progress of your trading activity. Once you fail, then because you have the history, you can evaluate the technic you used. Because trading is similar with generating a company, you must have track record from the company that you organize. Start from the cost to profit or loss which your company gain, and also evaluations to company provisions.

OK, how do you think so far? Have you taken a decision to invest your time to study forex? The next step, I will guide you to invest your time.
  1. You will need a personal computer (PC) or laptop, for further information, please refer Read further here
  2. Search broker who offers demo account with platforms and facilities you think conveniencely to use, reasonable spread, ease of deposit and withdrawal process, and with the affordable cost.
  3. Arrange trading journey, trading journey is a must! Click Pips Journey for details.
  4. Start with practicing theory you have learned and do testing. Please read (underconstruction) to enrich your knowledge about tricks I have done.
  5. Do step 4 within 2-3 months and review your trading journey daily, weekly, and monthly.
  6. If you have found the appropriate and reliable technic within several months (at least 2-3 month), and if you feel ready, you can join to real or live account.

Welcome to real forex world. Good luck!

What kinds of tools do you need?

OK, maybe now you're interested to enter forex market. So what kind of tools do you need?

First, you may need a computer or laptop, but some brokers have develop software for PDA, but PDA is used if you are in mobile condition only. It's not recomended using your PDA only.

Second, you may need an internet connection.
Third, you may need a snack and a cup of coffee to accompany you and of course to makes you relax.

It's quite simple isn't it. Are you interested? Let's go find out more.

Forex Term

Now we will learn about kinds of forex terms

Base Price/Counter Price
You know that currencies are trades in pair, let's see the pairs :


Let say GBP/JPY pair, it means that GBP becomes base currency. When GBP getting stronger, the opposite JPY "the counter currency" is getting weaker. For Example, if GBP/JPY turns from 210.10 t0 211.30, GBP is getting stronger because we requiring many JPY to exchange with GBP.

Bid/Ask, Spread and Pip
In forex transaction, price buy and price sell of currency expressed in bid/ask or bid/offer. For example :


If you want to buy EUR/USD, you have to see the "Ask" Column. If at that time you want to buy EUR/USD, it gonna cost you 1.4803. After that your gain is -3 pip. That is spread. Then if you wanna close your transaction, you have to see the "Bid" Column.


Now your EUR/USD turns to 1.4820 and you wanna close your transaction. At that time you gain profit 17 pip.

Why Investing In Forex?

Introduction

Welcome to my blog, you are entering foreign exchange (forex) knowledge that will guide your investment become profitable. If you’re an expert trader you can find some information that might be usefull, but if you're not, this blog will be a good start that will guide you in the middle of the forex market.
Market can be assumed as war arena. You face many traders with their own weapon, so if you wanna win, you should protect yourself. The weapon which must be used is knowledge. For beginner trader, you should invest your time before entering real forex market. This blog provides especially for beginner trader so you will not face losses in forex market. Many traders assume that it's easy to gain money in forex. They think that they can gain much money in a short time. They think that they can gain dollar into millions of dollars. How about you? That kinds of stories often pulling trader entering forex market. It is true that having investment in forex is very beneficial which is proportional with the risk. So, that story isn't wrong for trader who have enough knowledge. If you don’t have enough knowledge, it will be your worst nightmare. So you'd better collect a lot of informations to become successful trader, not a looser trader. Let's begin our class for successful trader. Have faith in that!


Foreign Exchange Market

Foreign Exchange Market or Forex is a place of currency transfer of a state with the other state currency. In this market you trade money, for example if you buy Japanese Yen, it’s similar with buying share in stock market, you are buying share of country. Here are the popular currencies that commercialized :




Why Investing in Foreign Exchange Market

These following attractive reasons will explain to you why many people are entering this market :

Small Investment High Profit
You can trade even in 1$ depends on the broker you choose! However, Forex Investment no longer belong to rich trader. Now you can join with small trading or big trading account. Doesn't it sound great?

High Liquidity
Forex Market is extremely liquid. All over the world is connected to Forex Market. Commercial transaction, like importing or exporting the goods, raw materials and services are inseparable from Forex Market. Various investment activities in all over the world which is performed within international scale, like foreign direct investment in capital market and money market that conducted by Hedge Funds, Individual Investor, Commercial Bank, Central Bank always involve the transaction of Forex Market. It means that you will never trapped in transaction where no one want to transact with you. The broker you choose will take care of your transaction.

Low transaction cost
You will found no brokerage fees, no clearing fees, no exchange fees, no taxes. The fees only something called the bid-ask spread. The level of spread depend on the pair you choose. Greater the spread, greater the volatility or the risk.

A 24-hour market
Forex Market never sleep. This is awesome. You can choose the time you want to trade, even in the morning, noon or night. Forex Market open from Sunday 05:00 till Saturday 05:00 GMT+7 time. Find out more in Special Topic about this hour market!
Leverage
It's still beneficial condition for trader who has not much money. For example, you want to buy $1000 worth of currencies. You don't have to spend $1000 if the broker you choose offer 1:100 leverage. It means that you only spend $10. Bigger leverage, you can gain bigger profit with small investment. But, if you're newbie in forex, bigger leverage is too dangerous for you. You have to realize that as well as bigger profit brings bigger opportunity to loss as well.

Free Facility
You can practice your forex technic with free software, charts, news, indicators even free signals or recomendations and also demo account before you ready entering real account.

So, what do you think about this opportunity? After this we will learn much further about forex in the next discussion.