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FOREX
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The Miracle of the Euro And Forex Trading Secrets Confused
as to how the Euro could possibly be affecting his small and seemingly
insignificant business, I asked him how. “Because of the Euro!”
EUR/USD last trade 1.2850 - One Euro is worth $1.2850 US dollars.The first currency (in this example, the EURO) is referred to as the base currency and the second (/USD) as the counter or quote currency. He went on to explain, after calming down of course, that the distributor that he orders his vintage parts from had increased their prices by roughly 30% due to the dollar’s poor performance against the Euro. Apparently, it takes about $1.30 USD to buy the same merchandise that may be acquired with 1 Euro. Essentially, the relationship between the dollar and the Euro is the same as we have always had with the Canadians—only, we have become the Canadians in this bizarre scenario! After getting off the phone with dad I decided to investigate this currency exchange question a lot further and came to one startling but very true realization—the stock market is for chumps! Foreign Exchange is where it’s at. The act of exchanging the legal tender of one country for that of another. People who play the currency exchange market (Forex) do! With the same amount of analysis or less in most cases, people anticipate the rate at which one currency will convert into another and Presto!—profits please! So
if one anticipates that the Euro will be stronger next week compared with
the dollar and I convert $50,000 into Euros, then next week when the Euro
does in fact rise I can convert those Euros back into more dollars than
I initially invested only a few days earlier—or even the previous
day! Why have your money tied up for extended periods of time praying
for a good quarterly earnings report or being grateful for the peanuts
thrown to you in the form of a dividend? My father’s misfortune illuminated a new world for me. Trading currencies is simply better than playing the stock market and more profitable. Just as with the stocks, you learn which indicators to track and the fundamental principles which propel the market in one direction or the other. There are of course programs and courses out there offered by people who have played this game for years and who are now sitting back in luxury while the rest of us have seen our retirement plans devastated by that volatile mistress known as the stock market. So I ordered a Forex course and learned what I had to in order to start cashing in on this phenomenon. I stopped waiting on earnings reports and praying for those stocks to go up and started making money daily on in the currency exchange market! My actual startup costs were only $500. Of course I already had my computer and internet connection, but for me the possibility of working only an hour a day from home and earning an extra few hundred dollars a week was amazing. The course I ordered was Peter Bain’s Commercial Currency Trading Secrets but there are others out there. I just liked the idea of having a Successful trader at my side at all times. And Peter’s course allowed me to do that through his DVD’s. This
for me is a great way to earn extra income. I might even quit my job one
day and do this full time. Learn more about this Incredible Income Opportunity
for yourself. Just go to: Even though it has been somewhat of a loosely guarded secret, every day more and more investors are turning to the all-electronic world of FOREX trading for income and profit because of its numerous benefits & advantages over traditional trading vehicles, like stocks, bonds and commodities. But, still, whenever something seems new or is just becoming a part of social conversation, news articles, and water cooler gossip, misconceptions have to be overcome, the mind has to be open and the slate has to be clear for starting out fresh with the CORRECT information. So, in this article, it is my attempt to give you some solid, but not over-detailed, information on just what the heck "FX" (FOREX) means, what it is, and why it exists. As a successful trader said, Trading FOREX is like picking money up off the floor. Not trading FOREX is like leaving it there for someone else to pick up." Others in the industry have also said, Trading FOREX is like having an ATM machine on your own computer. Here's an explanation (one I feel you'll appreciate) of what FOREX is and how a bunch of traders, profit from it: The Foreign Exchange Market, also referred to the "FOREX" or "FX" market, is the spot (cash) market for currency. But, don't mistake FX as trading the futures market, where you buy a contract to purchase a particular currency at a future price in time. What FX traders do is much less risky than trading currencies on the futures market, much more profitable, and a lot easier, than trading stocks. So, you're probably wondering where it's at ... or ... how to access the FX market? The answer is: FX Trading is not bound to any one trading floor and is not centralized on an exchange, as with the stock and futures markets. The FX market is considered an Over-the-Counter (OTC) or 'Interbank' market, due to the fact that the entire market is run electronically, within a network of banks, continuously over a 24-hour period. Yes, if that's the first time you've heard about an all-electronic market, I know this may sound somewhat intriguing to you. Here's what you are actually trading when you participate in the Foreign Exchange (FOREX) market: Essentially, like the large banks who use the FX market to protect themselves from the fluctuating exchange rate of different currencies, as an investor, what a FX trader is doing is simultaneously exchanging one countries currency for another. So, in actuality, they're electronically trading a currency-pair and the price that is quoted to us is the exchange rate between the two currencies. In other words, simply the quoted price is how many of the one currency is worth 1 of the other currency.
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