Beginners Guide to Foreign Exchange FOREX Trading

Forex is a term that stands for Foreign Exchange. It is sometimes just FX, too. These terms all describe the process of trading the currencies in the world. Unlike the stock market, in the Forex markets, you do not trade ownership in a business. Rather, you are trading the value of money, based on the ups and downs of the currencies of the market. It sounds interesting because it is.

The Forex market is the largest market in the world. It is larger than any of the stock markets. Each day, more than three trillion United States dollars trade on the Forex market. This outstanding amount of activity can be a good thing, but it can also be quite worrisome, depending on whom you speak with. It is important to know that much of the Forex market trading that occurs is speculative trading. It is not just a market based on people changing money hands based on their needs to have another currency. In fact, only a very small portion of Forex trading is in fact from the government or companies out there who need to trade currency for their needs. Most of the trading does not occur for conversion, but for profit of investors.

Table of Contents
Understanding Forex Trading ……………………………………………………………………………………………………… 3
Which Forex Currencies Should You Trade? ………………………………………………………………………………….. 3
Multiple Forex Time Frames Is Best ……………………………………………………………………………………………… 4
3 Forex Pairs For Beginner Forex Traders ……………………………………………………………………………………… 5
Choosing a Forex Trading System ………………………………………………………………………………………………… 6
Forex Trading Hours …………………………………………………………………………………………………………………… 6
Forex Trading In Lots ………………………………………………………………………………………………………………….. 7
Forex Trading Means No Commission ………………………………………………………………………………………….. 8
Forex Trading Platform Choices …………………………………………………………………………………………………… 8
Forex Trading Tools ……………………………………………………………………………………………………………………. 9
Hiring A Forex Broker ……………………………………………………………………………………………………………….. 10
How The Forex Market Works …………………………………………………………………………………………………… 10
Is Forex Trading Too Risky? ……………………………………………………………………………………………………….. 11
Making The Most Out Of Forex ………………………………………………………………………………………………….. 12
Managing Your Money In Forex Trading ……………………………………………………………………………………… 12
Why Forex Traders Like The Majors ……………………………………………………………………………………………. 13
The 90 Percent Risk In Forex Trading ………………………………………………………………………………………….. 14
The Liquidity Of Forex Trading …………………………………………………………………………………………………… 14
The Pip In Forex ………………………………………………………………………………………………………………………. 15
The Spot Market In Forex …………………………………………………………………………………………………………. 16
Understanding the Forex Drawdown ………………………………………………………………………………………….. 16
Trading Forex And The Process ………………………………………………………………………………………………….. 17
Using the Web For Forex Trading Help ……………………………………………………………………………………….. 18
What Is A Forex Spread? …………………………………………………………………………………………………………… 18
What Time To Trade Forex………………………………………………………………………………………………………… 19