FOREX

Forex trading is basically trading one currency against another currency.
You use USD to buy Euros when the price of the USD is higher than the Euro. So you get more Euros for your Dollar.

When the Euro gains on the USD, you then sell the Euros and buy back USD and make a profit. As, simple as that?

I wish it was that simple. The foreign exchange currency market is a very volatile market and trades 24 hours a day, which is why it is such a lucrative market to get into.

The professionals sit in front of a computer 12 hours + a day and can make hundreds of trades in a day.

They will buy into a currency in $100,000USD lots and use various leverage percentages to make their profits. Leverage is the amount of money that you are prepared to risk, to obtain the gain that you want. Example: 3:1 your risk $1,000 to gain $3,000.
With the example below start with $10,000 and you can afford to loose over 50% of your trades, and still come out with a tidy profit.

Totals $12,000 (minus) $6,000 = $6,000 profit (if you are using a broker for your trades you will also have to deduct their fees from your profits)

The above example is of course a very simplified example, it is a little bit more complicated than the example, but it should give you an idea of how it works.

All Forex traders have lost money trading, it is only the dedicated and self disciplined that come out regularly on top. They have a strategy that they stick to and they only risk 1% of their equity in any one trade.

Once you lose your discipline or start trading more of your equity on higher leverage, you are getting into the gamblers mentality. And, there is only one direction you are going to go and that is downwards and bust.

I would say that 90% of Forex traders that get into trouble, have a bad run and make the mistake of increasing their trade from 1% of their equity to 10% or more and use a 10:1 or more leverage to regain their losses. That is Kamikaze trading?

If you do get into the downward spiral the best thing that you can do is stop, walk away and play golf or something, and get your discipline back and without any emotion go back to basics and start recuperating your losses slowly in small increments. It may take a little bit of time to recoup your losses, but hopefully you will have learned a valuable lesson and start becoming more professional in your trading.

If you think that you can start trading in FOREX and become a multi millionaire with in a few weeks, forget it, it is not going to happen. You could probably start trading in Forex as a multi millionaire and end up bankrupt quicker than you can say, FFFFFOrex.

Prior to the advent of the internet, FOREX trading was only for the big boys and the big boys are still in control today. These people have been brought up in the game and skills have been passed on through the generations and they have the sort of money that can influence and manipulate the markets to their own advantage.

Unfortunately that is the way it is, if you do not like the idea and think it is wrong, do not get involved because that is the way it is and, you are playing in their back yard.

My suggestion would be to use a FOREX robot, there are many on the internet and utilize the demo version for about six months and learn as much as you can and when you have traded via the demo and made a consistent profit for at least 3 months preferably 6 months then give live trading a try. (There is a big difference between; trading when you can not lose your money, than there is when trading with your own money, and losing it).

Watch Forex Gold mine Demo Video

Remember: if you cannot afford to lose it, DO NOT, use it.