Learn Currency Trading (FOREX)

A few years back I in gained an interest in currency trading, one of my friends worked for Chase Bank in their, arbitrage department where they took advantage of a price differential between two or more markets by trading lots of $100,000. I had an interest but I had no idea where to start I thought it was such a complex skill that required an ivy league education. Until I learned about the Forex (Foreign exchange) market, Forex trading is relatively new and has increase dramatically over the past 10 years. All that is required is the knowledge, a computer, high speed internet connection and starting cash.

Companies make huge amounts of cash from trading Forex, I once heard that Mercedes Benz makes more money trading currencies than they do selling cars. I don't know if its true but it is possible. Individual Forex traders are able to do the same thing as large banks do but on a much smaller scale. The Forex market is a much more immediate reflection of a countries economy and changes accordingly, with the interest rate manipulation of their respected financial governing bodies as well as good old supply and demand. Currencies like the Japaneses Yen (JPY) US Dollar (USD), British Pound (GBP) and European (EUR) are the major currencies as well the major economies in the world. Most of the worlds transactions are made in one of these major currencies oil for example is largely settled in USD this is because of the strategic relationships the USA has with various oil producing nations as well as the stability and value of the USD. Foreign countries also hold reserves of other currencies in the treasury a major shift in the reserve levels or base currency of major transaction can affect the value of a currency and therefore the strength of the corresponding economy and if dramatic enough can result in war, irregardless other reasons given for war 99% of the time their is no other legitimate reason to fight a war because wars are extremely expensive thus the cost of going to war must out weigh the potential lost value experienced by the declaring country.

So currencies are serious business and its not going anywhere anytime soon, trading currencies are also more liquid than trading stock with so many large banks and countries involved. When I started it took me 1 month to train myself by reading and watching various videos to learn the system, it took another month of trading on a demo account for me to learn the trends and develop a profitable trading strategy. So, in 2 months I taught my self a new skill and was up and running my own business with no overhead.

By Nero