Forex, AKA foreign exchange or FX trading, is the conversion of one currency type into another via a Trade. Forex is one of the most active trading markets in the world with a daily trading average of over $5 Trillion USD.
How Forex works can be described as a network of buyers and sellers, who trade/transfer currency between each other at an agreed price. It is the means by which individuals, companies and central banks change one currency into another. Just like when you travel abroad, you will convert some local cash to that of your destination’s currency.
While a lot of Forex is done for personal or business practical purposes, the vast majority of currency trading is undertaken with the goal of making a profit. The amount of currency traded every day can make price movements very volatile. It is this volatility that makes Forex so attractive to traders creating a greater chance of high profits but that same volatility increases the risk.
Tradition Forex trading Methods may make you rich if you are a hedge fund with deep pockets or an unusually skilled currency trader. But for the average retail trader, rather than being an easy road to riches, forex trading can be a rocky highway to enormous losses and potential penury.
No matter where you live or what hours you work the Forex market is up and running. As long as you have a computer and an internet connection you can trade.
A search on the internet brings up page after page of resources for the Forex trader, including brokers, educational materials, calculators, software and manual strategies, etc. Some of these are quite good and can help the new trader learn about this market, others unfortunately are scams or sales pitches. Buyer beware!
The real breakthrough in this market is the evolution of new Software Technology. More specifically, customized intelligence expanding software, A.I. Artificial Intelligence. This AI Software as I coined, is emerging to help the average trader win much more than they lose, which has not been the case for 90% of the amateur traders out there like you and me.