learn forex first

Forex trading is hard business. With the currencies frequent fluctuations and the markets volatility, forex trading can be a pretty stressful job. But not for everyone.

There are some that can cope with the rigors of dealing with forex trading. In fact, it may even seem that they are cut out for the job. Like all jobs, there are personality types that are perfect for the work being done. A forex broker has his job cut out for him but if he has the right attitude, he can be successful.

Here is a rundown of qualities that people in the forex industry should have. Read each one and determine if you have each of them.

1. Risk taker
People dealing in the forex trading industry must have the backbone to stay in the game and gamble when they need to. Forex trading like many investments that are high risk is often a gamble. Without the willingness to take the plunge and just follow your gut instincts, you won’t be successful in the business. This is because oftentimes you are called to just stay in the game and not fold. That means, trusting in your gut and taking the possible risks. Of course this does not mean that you just plunge into an investment without any thought. After all there is something called a calculated risk and to do that, you need to have the next quality.

2. Willingness to learn
Although forex trading is a gamble, it is not like lottery where in your chance are purely through luck. If you are willing to learn about the industry, you will find out that eventually, the fluctuations follow a certain pattern. Appreciations and depreciations of the currency do not just happen in random. They do so because they are affected by factors in the economy. This, you will learn when you read up on basics of forex trading and immerse yourself in the news. That way, you will be familiar with the industry and eventually understand the dynamics that make it work.

3. Business-minded
Forex trading isn’t for kids. That much is obvious but neither are they for adults who act like kids when it comes to their finances. People in forex trading should be able to handle their finances well especially if they will be tasked to handle other peoples money. They should have business savvy, which will help them in dealing with people and their money.

Miodrag Trajkovic is the founder of FOREX a website specialized on Forex Brokers, resources and articles. This site provides updated information on Forex Trading, Online Forex Trading, Mistakes In Forex Trading, Forex Brokers.
For more info visit his site: Forex Trading

Back in 1997 major financial slump rocked number of countries in Asia, an event that became known as “Asian currency crisis”. Effected countries included Taiwan, Thailand South Korea and others. One of the memorable comments of the time came from one of leading Thai politicians. He blamed this whole mess on speculators, with George Soros being the main culprit. The remarks went so far as to public statement of “not being able to guarantee his safety if he visited Thailand”. Quite ominous.

The fallout in South Korea was brutal. The US Dollar has about doubled in value against the Won, with USD-KRW moving from just above 800 in early 1997, to 1600 by the year’s end. Local stock market suffered similar fate, as did all areas of economy. Perhaps most telling was an enormous spike in unemployment, as the jobless rate soared to almost double digits, with about 9 million people out of work.

This author observed the aftermath first hand, during one of his business trips to South Korea at that time. Collapse of once high flying conglomerate Daewoo under burden of debt. The sight of many construction projects suspended or stopped all over Seoul and Pusan. Daily failure of scores of small business. It was good time to visit South Korea, due to low prices, but very difficult period for residents.

The country has rebounded nicely since then and became one of Asia’s most dynamic economies. KRW strengthen considerably reaching level 900 against USD in 2007. The stock market has recorded double digit gains in four of the last five years, gaining 32% in last year alone. Korean companies like Samsung Electronics Co, and Hyundai Motors Co, have established themselves as some of the world’s leading corporations.

Things have changed in 2008. Challenges like high oil prices, inflation, external debt and account deficit have shaken investors confidence. While many countries have seen outflow of funds into the dollar, this process became especially painful in South Korea. The Won has become the Asia’s worst performing currency, loosing 20% to date. Stock market was no better, falling 25%, with farther sell off of equities expected.

These developments created widely spread comparisons to situation from 1997 and were quick to be picked by the press. International Monetary Fund disagrees with this assessment and expressed confidence by saying that South Korea is a mature and resilient economy with country’s fundamentals much stronger than a decade ago. Korean financial authorities, however, felt obligated to act by intervention on Wons behalf in the open market. This seemed to stop the bleeding for now.

What can be expected next? In all reality, 1997 type sell off is extremely unlikely. As South Korean economy is cooling down together with the rest of the world, Seoul might not be able to stop bleeding of the stock market but there is one thing they can do- keep intervening on behalf of its currency. Unlike before, there are huge foreign reserves, about 250 billion dollars worth of, and they can be used to support Won.

Very likely scenario, as of this writing, is continued fall of Korean equities, in tune with broader stock declines. The Won should also keep dropping, but in much more measured and steady pace. Central Bank has not mentioned what the comfortable level for USD-KRW is, but as we noticed over last few years, major trends are very powerful and can go through any “line in the sand’ drawn by anybody.

Current rate is around 1150. Even with expected interventions, Won can easily weaken to 1300 and maybe 1400, but far short of the previous low of 1600. Also, one shouldn’t look for a fast move, but rather steady depreciation, lasting a year or two. This is not a situation for active traders, but for those who prefer longer term positions current development might present good opportunity for farther selling of KRW.

Mike P. Kulej is a Chief Forex Strategist for Spectrum Forex LLC. He specializes in mechanical trading systems as explained on http://www.spectrumforex.com . Spectrum Forex LLC offers numerous services to individual traders. He also publishes trading blog http://www.fxmadness.com. With questions and comments e-mail him at kulej@spectrumforex.com

Sanjay Rane asked:


Forex trading is trading in a pair of foreign currencies such as the U.S. Dollar vs. the Euro. The word “Forex” is an acronym for foreign exchange. In the process of Forex trading, one currency is bought and another currency is sold in one deal. A foreign market is influenced by the supply and demand of products and services offered by another country. Depending upon the market condition the movement of one currency in relation to another is influenced.

Forex Trading System

A Forex trading system is a method of trading in foreign trade or currency using specific criteria of technical analysis. Though the foreign trade also involves purchase and sale, it is very complicated in that the commodity involved here is currency.

The behavior of one currency with respect to the movement of another currency is highly unpredictable. As a matter of fact, the unpredictability depends upon many factors like the economic condition, political situation, natural environment etc. Therefore, for a lay man sitting in one corner of the world it will be very difficult to understand the phenomenon.

It is here, that a Forex trading system comes into play. The system by means of its research and analysis provides valuable data to the person, employing the system. The findings are supported by charts and other statistical tools which helps understand the situation. The explanations with reasons and arguments enhance the understanding of the subject by the user of the system. The success of any system lies in its reasonable justification in favor of its decision and ultimately proving its recommendation. In fact, a good system explains the situation and leaves the decision to the trader to take himself.

Learn forex trading

Through the system of Forex trading one can learn forex trading using proven methods without having to re-invent the wheel. As already explained, Forex trading is a complicated area, where only a very few have succeeded. We have seen that a Forex trading system is a method of executing Forex trade in a systematic way using specific conditions that must be met in technical analysis. The complicated matters involved in the appreciation and depreciation of currencies in relation to another are analyzed with statistical data collected over a period of time.

The Forex market is not necessarily stable at any point of time. Nor is it moving on a straight line. Various factors affecting the price structure of a currency are analyzed in a systematic way. By this method the system offers many lessons to the practitioner of it. Learning Forex trading acquires more importance in the context of more potential opportunities it throws to the people aspiring to have a career in foreign exchange. On line trading technologies have increased the opportunities the system has created and continues to create.

Many an opportunity is missed because of lack of knowledge. Success in the business of Forex trading requires some discipline, patience, and a considerable amount of training and practical experience. The study of Forex system trading can greatly accelerate the process that otherwise relies on trial and error.