Forex Trading -Learn and trade with me

1. Opening a trade - So, in a particular trade, you will sell USD to buy EUR. This will open your trade.
2. Closing the trade - In our example, you'll sell EUR back to get your USDs

So, for e.g. the market rate is that 1EUR = 1.3000 USD. So, in our trade, you'll give 1.3000 USD to get 1 EUR expecting that the value of EUR will increase. So, lets say later in the day value of EUR becomes 1EUR = 1.3100 USD, then you'll close the forex trade by returning 1 EUR to get 1.31 USD.

So, this is the basic way to make money in online forex trading. You sell 1 corrency to buy other and then return the bought currency back once its value has increased.

2. Learn What is PIP -

A PIP is the smallest movement in the value of a currency in forex trading. So, for e.g -

When 1 EUR = 1.3000 USD

changes to 1 EUR = 1.3001 USD

Then it means that value of EUR has increased by 1 PIP.

This change in the value is how one makes money in Online Forex Trading.

3. Learn what are different types of accounts in online forex trading -

• DEMO Account - Yes..One of the most important accounts in Forex trading..Use this account to learn and master the art of online forex trading. The brokers create this account for free for you with virtual money. So, use this account to place trades, try different trading strategies without any fear of losing real money.

• Mini Account - An account that can be started with as little as $300 in your online forex account. With this account, you'll earn about $1 for every pip movement in your trade direction. On the other hand, you can loose $1 for every single pip movement against your trade.

• Major account - Starts with about $2500 in your online forex trading account. Here you earn about $10 for every single pip movement in your trade direction and loose $10 if pip movement is not in your trade direction.

Note: read this and learn this - Start with Demo online forex trading account and practice using it. If you cannot make money in your demo account, you cannot make money in your real account. After, you have CONSISTENTLY made money in demo account, then start mini account and after earning there consistently, start major account.

4. Learn what are the major currency pairs in online forex trading -

The currency pairs involve these currencies -

• EUR (Euro)
• USD (US Dollar)
• GBP (Great British Pound)
• CHF (Swiss Franc)
• JPY (Japanese Yen)
• AUD (Australian Dollar)
• NZD ( Newzealand Dollar)

So, currency pairs are EUR/USD, GBP/USD, EUR/NZD etc.

However I trade only those currency pairs that involve USD.

5. Learn how to know about which currency to buy and which to sell -

Generally the analysis is done in 2 ways - Fundamental and Technical. You can learn about these types by visiting this blog. I have already posted lots of information about these trading styles in my previous posts. Please go through and definitely go through those.

http://the-forex-trading.blogspot.com/

So, keep visiting this blog to learn more about online forex trading.

# posted by Money Maker : 4:59 PM