The article is finally here! I will show you how to get started trading the Forex 100% risk free. After this article you will start to experiment with Forex trading. You will not be a master trader the first day. It is important that you persist in your efforts. You have to keep trying until you succeed. There are a few things that I want to explain that you should know before attempting to set up your demo account.

I want to explain a little more about the currency pairs. Currencies are always traded in pairs in the Forex. The pairs have a unique notation that expresses what currencies are being traded. The symbol for a currency pair will always be in the form ABC/DEF. ABC/DEF is not a real currency pair, it is an example of a symbol for currency pairs. In this example ABC is the symbol for one countries currency and DEF is the symbol for another countries currency. Here are some of the common symbols used in the Forex:

USD - The US Dollar
EUR - The currency of the European Union "EURO"
GBP - The British Pound
JPN – The Japanese Yen
CHF - The Swiss Franc
AUD – The Australian Dollar
CAD - The Canadian Dollar

There are symbols for other currencies as well, but these are the most commonly traded ones. A currency can never be traded by itself. So you can not ever trade a EUR by itself. You always need to compare one currency with another currency to make a trade possible. Some of the common pairs are the EUR/USD, GBP/USD, EUR/AUD, USD/CAD, etc......The currency pair looks like a fraction. The numerator (top of the fraction) is called the base currency. The denominator (bottom of the fraction) is called the counter currency. When you place an order to buy the EUR/USD, you are actually buying the EUR and selling the USD. If you were to sell the pair, you would be selling the EUR and buying the USD. So if you buy or sell a currency PAIR, you are buying/selling the base currency. You are always doing the opposite of what you did with to base currency with the counter currency.

If this seems confusing then you're in luck. You can always get by with just thinking of the entire pair as one item. Then you are just buying or selling that one item. Thinking like this will still enable you to place trades. You only need to be aware of the base/counter concept for fundamental analysis issues.

So why is it important to know about the base/counter currency now? The base/counter currency concept illustrates what is actually taking place in a Forex transaction. I mentioned before that short-selling was restricted in the stock market. Short-selling is where you sell a stock/currency/option/commodity first and then try to buy it back at a lower price later. But in the Forex, you are always buying one currency (base) and selling another (counter). If you sell the pair you are simply flipping which one you buy and which one you sell. The transaction is essentially the same.

This allows you to short-sell with no restrictions!

You want to be able to short-sell with no restrictions so you can make money when the market drops as well as when it rises. The problem with traditional stock market trading is that the market has to go up for you to make money. With Forex trading you can make money in all directions.

Another important concept for Forex trading is the leverage. Leverage is when you can use a little money to control a lot of money. The Forex market is probably the highest leverage market in the world. There are different types of leverage available in Forex trading. The highest leverage possible is 200:1. This means that if you put up $1 margin, the trading provider will allow you to trade with $200. So if the price of the currency pair goes up 1%, you make 200*1%=200%! The margin for Forex trading is a good faith promise to the trading provider. Othermoney in your trading account also insures your transaction. You only need to
know that the margin is the amount of money you need to place a trade.

Another important piece of lingo is the term "pips". Since we have the EUR/USD, EUR/AUD, etc..., we need a way to talk about the number or price. When you see a Forex currency pair price quote, the last digit of the price is commonly referred to as a pip. So if you see a price quote of 1.6118 and then a price quote one minute later of 1.6119, the price rose 1 pip. Similarly, if we see a price quote of 187.50 and then another one 5 minutes later of 187.58, the price rose 8 pips. The pip is always the last decimal place of the currency price quote.

These articles literally could go on for several years and you still would not know everything. At this point, you are ready to start demo trading. Once you begin to place demo trades, you will learn a lot about how Forex transactions are placed. This is an important step for you to be able to learn how to become a trader. Important Note: Just fooling around in a demo account can be a great learning experience. You will not learn how to become a trader this way. You need to have a trading strategy, like the ones at 4xtrend.com, or through the Forexezine you will be receiving.

There you can sign up for a free mini-demo account. A mini account is just like a real demo account, except the trade sizes are smaller. In a real account the smallest trade size is $100,000; in a mini account the smallest trade size is $10,000 (this can be done with a $50 margin, the power of leverage!). There are several other places online to sign up for a free demo account. I use fxcm, because they have the best overall reputation online. Fxcm has built itself to the premier Forex trading platform. I don't get paid anything to endorse them, but they are currently the best.

Once you sign up for your mini-demo account, you will need to try out one of the trial charting packages. Any of these will do because they all have the SMA. You can then set up your demo account and use the SMA crossover method from Technical Analysis Introduction for Forex. This is a good way to get used to how orders are placed. Once you
have a real trading system, you will already know how to place orders properly. Everyone makes mistakes placing orders. You need to experiment in a demo account to make your mistakes without losing money.

At this point you have to make a decision about how fast you would like to learn how to become a trader. The truth is that the longer you wait to get in on this market, the more potential money you are missing out on. You need to decide what time frame is right for you to begin trading.

You need to decide if:

1. You want to place real trades within the next 3 months (or sooner, depending on your desire)
2. You want to build your knowledge for several months before placing real trades.

The choice is entirely yours. No-one else can make that decision for you. You need to make a plan and stick to it. It is important not to put off your success. Success requires action.

If you want to place real trades within the next 3 months, you should check out 4xtrend. There are some great resources at extremely affordable prices that can get you trading in a very short amount of time. 4xtrend.com meets all of the criteria outlined in Forex Trading Systems Exposed for a tremendous value trading course. If you want to build your knowledge base, then the Forexezine is the ultimate resource for you. If you would like to subscribe to it, all you need to do is signup at the end of this course. At this point, I would like to congratulate you on completing the Insider Secrets of Online Currency Trading course! You have already showed a level of perseverance that most people lack.

I would also like your input on any aspect of Insider Secrets of Online Currency Trading. I am interested in any parts you found helpful, insightful, confusing, etc... Any feedback about this course would be extremely helpful for all of the readers. This is largely a collective effort; by contributing you benefit yourself and others. Simply send your questions to questions@4xtrend.com (Use the subject line: Forexezine).

Here is a recap of what you should be doing right now to pursue your Forex trading goals:

1. Setup a free demo account by going to: http://fxcm.com/mini-demo-registration.html
2. Decide your time frame on when you want to enter the market. If you want to get there as quick as your heart's desire, go to www.4xtrend.com. If you want to take your time, sign up for the Forexezine Below.
3. Be persistent and never give up!

If there is anything I can do to ensure your trading success, please send me a line at:questions@4xtrend.com

You have now reached the 4th article in this free Forex course. This article willa briefly introduce you to fundamental analysis. Fundamental analysis is the most difficult aspect of Forex interpretation. It requires an extended period of learning fundamental concepts and their impact on the Forex market.

To learn a fundamental style of trading completely would require years of experience. So how can you take advantage of fundamental concepts without having those years of experience? The Forexezine provides the answer. You will receive articles that explain different fundamental market concepts - one concept at a time.

Over time you will have an increasing arsenal of fundamental concepts to add to your technical trading skills. Tips on how to compare fundamental results with technical signals will be given in the "Forex Fundamentals" issues of the Forexezine.

So what does fundamental analysis do? Fundamental analysis uses "economic indicators" and other news related information to determine an impact on Forex prices. These "economic indicators” are published at regular intervals and many of the International Banks use this data to forecast Forex trends. The economic
indicators measure how well an economy of a country is doing. This data can then be used to compare the economy of one country with another. The status of an economy will influence its exchange rate, so fundamental analysis provides us with ways to measure potential Forex trends.

When this data is made available to the public there is a reaction from investors and speculators. Information in the form of news and economic indicators is vaguer than that of technical indicators. There is a lot of gray area in this type of Analysis. The market will ultimately react to how people think the economic data compares to the current market situation.

Economic indicators usually reveal information that "Should cause a currency to go up in price" or "May cause a currency to go down". The words 'should' & 'may' in the quotes above reveal the ambiguity of the fundamental data. Here is an example of what analyzing fundamental data is like. Let's suppose there are six economic indicators (there are a lot more). Let's call our six indicators A, B, C, D, E, & F. Now we wait for the data from our indicators to be published in a financial magazine or at an online source. We manage to get the readings for our economic data for the EURO:

Indicator A: is in a range where the Euro may go up
Indicator B: is in a range where the Euro should go up
Indicator C: is in a range where the Euro could go down
Indicator D: is in a range where the Euro usually goes down
Indicator E: is in a range where the Euro could go up
Indicator F: is in a range where the Euro may go down

By looking at the above indicators, you don't know what the Euro is going to do. Furthermore, currencies are always traded in pairs (explained in more detail in Forex Demo Account Setup). You would have to get the fundamental data for another currency pair and compare it with the EURO to make a trading decision. I think you can appreciate that this is no simple task.

I do not want to discourage you away from fundamental data. The best way to learn is one piece at a time. Eventually you will build a puzzle from all of the fundamental and technical data and make more informed trading decisions. At this point I am going to list some of the most commonly used fundamental indicators (sometimes referred to as economic indicators).

1. The Gross National Product (GNP). This number represents the total financial position of an entire country. This is probably the most referred to economic indicator (although by itself it does not provide enough info to make decisions).
2. The Gross Domestic Product (GDP). Basically this is the GNP for the United States. This measure is still referenced, but is almost completely phased out of use. The term GNP has been used to represent GDP as well.
3. Consumer Price Index (CPI). Measures retail prices in a country.
4. Producer Price Index (PPI). Similar to the CPI, but for wholesale prices.
5. GNP & GDP Deflator. Readjusts the GNP & GDP for inflation.
6. Industrial Production (does not have an acronym).
7. Capacity Utilization
8. Unemployment rates also have an impact on foreign currency exchange rates.
9. Personal Income has an impact on foreign currency exchange rates.
10. Consumer Spending Indicators also influence Forex prices.

These are just a handful of economic indicators used in fundamental analysis. Throughout the course of the Forexezine you will be able to interpret these indicators.

If you do not like the concept of fundamental analysis, you can certainly skip it altogether. There are plenty of purely technical systems out there for you to trade with (like at 4xtrend). A key concept to technical analysis is that all of the fundamental data is ultimately revealed in the price anyway. And if you have a

system that must be triggered when the price goes up or down, then you have a great tool. The fundamental analysis issues of the Forexezine are purely for those people who are interested in them. Please send me an email at questions@4xtrend.com, and let me know if you are more interested in technical or fundamental trading. I will tailor the frequency of topics to the reader’s preference.

I always encourage you to drop me a line with any questions, suggestions for new articles, articles you have written, or just ideas related to the Forex. Please wait until after the next article to ask any questions about the Insider Secrets of Online Currency Trading course. I still have some more concepts to add to get you started trading in your own free demo account. There are a few more things that will help you get stated demo trading in Forex Demo Account Setup. You won't want to miss the next article.

This article will focus on Technical Analysis. This field of knowledge is probably the largest in the Forex trading world. This article will explain what Technical Analysis is and what it does. I will also give you a basic technical trading strategy.

There are two main types of analyzing the Forex market. The first type is technical analysis. Technical analysis is a way of using historical price data in different ways to predict the future price of a currency pair. Technical analysis relies on price charts and various technical indicators to make predictions. The main assumption of Technical Analysis is that the historical price data reveals patterns that repeat themselves over time. Fundamental analysis is also a popular way of analyzing the Forex market. Fundamental analysis examines different facts about the economy to predict price movements. Fundamental Analysis Introduction for Forex will concentrate on fundamental analysis exclusively.

I am explaining technical analysis first because it is the easiest and most precise way of trading the Forex market. "The numbers don't lie" is a phrase that applies more to technical analysis than to the fundamental approach. Technical analysis can be learned much faster than fundamental analysis and requires less expertise.

I mentioned above that technical analysis is based on technical indicators. These indicators make different mathematical calculations and display the results on a price chart. The skilled Forex trader interprets these indicators and makes trading decisions. So how do you become a skilled Forex trader, friend? Read on to find out. The most basic technical indicator is one that you can draw with your own hand. I will simply explain this indicator, but you will not use it. This basic indicator was used early in the stock market, and is still used today. This indicator is known as a "trend line". To draw a "trend line" you simply:

1. Print out an historical price chart for a given time interval of a currency pair.
2. Draw a line connecting two or more parts of a graph that have higher lows, or lower highs.

Poof! Now you have a trend line. This trend line represents the basic price direction of the currency pair. When the price of the currency pair breaks through the trend line in the direction opposite of the trend, you would expect a reversal. By reversal I mean this:

1. If the prior trend was upward and the price broke through the trend line moving down, this would indicate a new downward trend using the trend line method.
2. If the prior trend was downward and the price broke through the trend line moving up, this would indicate a new upward trend using the trend line method.

 Trend lines can act as either floors or ceilings for the price data. When these lines are penetrated, the price usually moves completely to the other side of the trend line.

Suppose you are monitoring the EUR/USD (a popular currency pair). You draw a trend line connecting 3 points where higher lows are reached than previously on the chart. After you draw the line, you notice that all of the price data on the chart so far falls below the trend line you have drawn. The trend line is acting like a "floor". The floor appears to be a boundary that the price will not cross. 

So now you wait until the price crosses the boundary. A few periods later you notice that the trend line has been broken when the EUR/USD fell below it. So now you would expect the price to go even lower because the "trend line" method suggests that an old floor will act as a new ceiling. So now you can expect all of
the prices to be below the trend line once it has been broken. Once the trend line is broken, the prices should stay below the trend line. This method is not very scientific. A lot of the method depends on how you draw your trend line. I have also given you a simplistic version of the trend line method. There is a little more to it. Because the trend line method is not very scientific (or accurate) better methods have been developed. Some changes were made to the trend line philosophy and many people called for a more precise method. There are actually many more precise methods available today. The next method was not a practical candidate to replace trend lines until the computers reached the sophistication of the mid 1990's.
 

The Simple Moving Average (SMA) is a theoretical extension of the trend line concept. The Simple Moving Average is plotted on a graph by the charting program for the Forex market data. The SMA takes the average of the close price of a given number of the last few periods. Any number of periods can be selected. You can have an SMA5 or an SMA20. An SMA5 will take an average of the previous 5 close prices on the chart and will plot it on the chart alongside the other price data. Each bar will use the previous 5 bars worth of data to calculate a point and plot it on the graph.
 

If the SMA is generated using a large number of periods (like an SMA50 or SMA75), you could interpret it similarly to the trend line. But if you select "faster" SMA's (like an SMA5 or SMA20), you need to use a different strategy.

I am about to give you a strategy using the SMA. In Forex Demo Account Setup, I will tell you how to set up a free demo account and begin using this strategy for practice trades. This strategy is a very basic one. It does not have a high degree of accuracy, but it is very easy to do and it is fun. It is a good technique to begin trading with. I want you to keep in mind that there are better strategies out there.

The SMA crossover method. After you have set up your free demo account (Forex Demo Account Setup), you need to open the charting software. The SMA is one of the most commonly used indicators and can be found in almost every charting package out there. When you plot the SMA, you will be able to select a line color to plot it. Make sure to use a different color than the actual prices on the chart.

Step 1: Plot an EMA5 using blue (or any color you like)
Step 2: Plot an EMA20 using red (or any color that is different than step 1's color)

You now have 2 SMA's plotted on the chart. You also have two signals.

Buy signal: When the SMA5 crosses the SMA20 moving up ward.
Sell signal: When the SMA5 crosses the SMA20 moving down ward.

The beauty of this method is that the price of the currency pair can not go up significantly without triggering the buy signal. In other words - if the currency pair begins to trend up, then the buy signal must be triggered. The opposite is also true - if the currency pair begins to trend down, then the sell signal must be triggered. The only time where this system fails is when there are false alarms. Sometimes the currency will act like it is going to trend up and then it will trend back down.
 

Here is a way to see how the SMA's predict price movements. You should open up some charts and put on the SMA5 and SMA20 overlays. You can then look at the times where the price fell/rose significantly. What did the SMA look like near the beginning of the price movement? What did it look like after? By viewing how the SMA reacted in the past you will get an intuitive feeling for how it will act in the future after an SMA crossover.
 

The SMA crossover method will work best in longer time frames. If you attempt to use it for tick-by-tick day trading, it will probably only produce losses. This method works better for trades that last weeks, or months. I have only shown you this method so you can trade it for fun. I strictly want to caution you not to trade any real money using this system ever, unless you add tips from the Forexezine to it and perfect it for yourself.
 

Insider Secrets of Online Currency Trading will provide you with other techniques in the future. This is an easy one to get started with. I have also personally developed 2 trading strategies that utilize more powerful techniques. In the next article I will let you know what fundamental analysis is and some of the basic measures it considers.The 5thForex Demo Account Setup  gives you what you need to understand and open a demo account.

Can you trade the Forex for free?

That is a question that a lot of people are asking, but nobody is answering. But seriously friend, do you think it is possible? I am going to discuss this question in this lesson. I want to explain the meaning of the question. When I mention "trade the Forex for free"; I am referring to the actual costs of the information & software that you need to make Forex trades. It would be ludicrous to imply that you will not need investment capital (money) to make your trades.

If you want to make profits in the Forex - you will need some money to get started trading. I am going to show you in this lesson (and lesson #5) how you can get started trading with as little as $300 in a mini- account. When you stop to think about an investment opportunity, $300 is nothing when you compare it to the kind of money that can be made in the Forex. Note: With a $300 investment, you will be able to control $60,000 worth of currency!

I wanted to mention the question: "Can you trade the Forex for free?" to save you a tremendous amount of time and money. I am going to share something with you that is not popular in the Forex trading education world. I have already gotten some nasty comments by other Forex trading course authors by implementing this philosophy. This nasty little secret is the lifeblood of the Forex trading education industry. I can not legally mention any company here, so I am going to tell you what this nasty little secret is. I will also give you guidelines to avoid falling into any traps. Here it is: All the information you need to trade the Forex is available in free or low cost resources.

If you search for Forex trading systems you will see an unbelievable trend. You will notice that many companies are charging thousands of dollars for trading courses. Perhaps the information is good, perhaps it is not. This is not the most profitable part of the education industry. Most trading courses require you to subscribe to a paid service that forces you to depend on that service. These paid services can be email notifications, software leasing, & other types of services. So what is the problem with a paid service? These services do not explain how the systems work. You are blindly paying for someone else's recommendations. The person selling the recommendations could be using free resources to make those recommendations.

Ok, let's suppose the paid service predicts Forex movements with the greatest accuracy. You begin to make hundreds of thousands of dollars by using the service. But something happens and the service becomes unavailable. What would you do then? You have just allowed someone to retire your trading career early and at will. Maybe the paid service works really well at first, but then the person running the service turns it over to someone else. You could lose a lot of money before you realize that someone new is running the system into the ground (along with your prior profits!).

It is never a good idea to put your fate in someone else's hands. If you could learn how to predict the Forex for yourself, you would be in total control. You would have knowledge that nobody can take from you.

I have been cheated by expensive courses that didn't deliver. I spent $3,000 on an investment course that gave great information. The information they taught was useless unless I subscribed to an $80 per month software. It took me 3 months to lose the $2,000 I had in my trading account. But I also lost the $3,000 on the course, plus $240 for the software subscription.

This really happened to me. The worst part was that I had paper traded using my own methods and had paper profits! If I would have stuck to my own "homemade" trading system, I probably would have turned that $5,240 into $6,000-$7,000 in the same 3 months!

This experience caused me to create more of my own investment strategies. I have created a few Forex investment systems that have done really well, and I have received positive feedback from my clients.

I charge an extremely low price for my investment information because I did not like having to spend $3,240 to lose $2,000. One man who sells a fairly expensive trading course bought one of my trading strategies. He emailed me telling me how much he loved my trading philosophy. He then told me I should charge $500 for my course. I thanked him for his input, but I told him that I wanted my clients to have the greatest value at the lowest price. He became very angry because he wanted to overcharge for his course (By the way, his course is useless unless you subscribe to his paid email service).

I told you this story because there are a lot of people out there overcharging for good information. Anyone who puts time into developing a system has a right to charge a fair price for their efforts. But just because they charge a high price does not mean that the information is premium information.

I know you are still wondering about how to trade the Forex for free. I am getting to that point. I have now ruled out paid services (not paid courses, if a course teaches you how to trade it could be a good investment so you are one step away from free Forex trading capabilities.

When you think about getting involved in Forex trading you have 3 options.

Option #3 - Spend several years learning everything there is to know about the Forex, and testing trading methods until you discover the secret on your own.

Out of the 3 options above, the only one I think is ridiculous is option #1. Option #'s 2 & 3 are the sensible options. Option #2 is the category most people fall into. Most people do not want to spend more money than they have to start trading, but they do not want to wait the length of time that Option #3 demands.

At this point you have to decide which category you are in. Please think to yourself and say "I, YOURNAMEHERE, am in category number” Did you put yourself in a category?

Ok, I’ll give you another chance to do it now.
Now you should have done it. What category are you in?

I have to assume that you consider your self in Option #2 or #3. Insider Secrets of Online Currency Trading is actually perfect for any of the options listed above. The focus of the Insider Secrets of Online Currency Trading fits in somewhere between options 2 & 3. The information in this course is designed to give you the information you need over time so you can get closer and closer to knowing everything about the Forex. Actually knowing everything is impossible. After lesson number 5 you’ll learn how to continue your education further at no extra charge.

So if you fell into Option #'s 2 or 3 you have to decide right now when you want to start placing trades in the Forex.

If you want to start placing real trades in the Forex market within 3 months, you will probably need to purchase a Forex trading course. The only way that you will be able to learn enough details about trading the Forex will be to learn from someone who has already researched and tested Forex trading methods.

There is nothing wrong with purchasing a Forex trading course in order to learn. The person who prepared the course had to learn how to trade the Forex. They then had to spend time putting their techniques into an understandable format. They also had to pay for advertising to get the message out about their course.

Once you purchase a course, you will need to test it for yourself. You should always verify that the trading system works for you by testing it out on paper before putting real money at risk.

Steps to purchasing a Forex course.

Step 5: Make sure the information in the course teaches you how to trade independently. You need to be able to take the information you learn with you if you discover a better trading platform in the future.

You should follow the above 5 steps any time you look for an investment course. If the courses do not meet the guidelines listed above, you should move on to the next course.

Note: If you are looking for Forex trading courses that meet all the above criteria, 4xtrend products were designed with these concepts in mind.

Now let's suppose that you want to take your time learning about the Forex. You are not in a hurry. You want to learn as much as you can before investing any money in the Forex. You may want to purchase a course in the future (or maybe not). You need to be ready when that time comes. You would like to learn a lot about the Forex without risking any money. You even want to experiment with some trading on paper before you spend any money on Forex courses.If the above paragraph describes you friend, then you are in luck. I have just described the person I created a new resource for. See the details at the end of lesson #5 to reserve your Forexezine membership. You’ll stay connected to the hot topics of the Forex. I have decided to learn new techniques & strategies to
help me profit from the Forex on a regular basis. I was also thinking that other people would also want to learn what I learn.

So here is the answer to my opening question: "Can you trade the Forex for free?" The answer is yes. If the only thing you have to invest right now is time, then the Forexezine will teach you how to trade the Forex completely free (You want to sign up if you haven’t already done so). All you need to do is passively read the Forexezine and apply the knowledge if you desire (you actually have the easy job here :)

The next lesson in the Insider Secrets of Online Currency Trading course will explain the use of technical indicators to place Forex trades. This lesson will also give you a strategy that you can use start paper trading. Lesson number 4 will introduce you to the fundamentals of the Forex. The fundamentals will help you
interpret how the news impacts Forex currency rates. The final lesson will give you all the remaining elements you need to start demo trading while the Forexezine sends you more information on how to trade on a regular basis (as long as you’ve subscribed).

In this article I am going to explain a few basic concepts about the nature of the foreign currency market (Forex). I want to remind you that this is not a comprehensive introduction to the Forex. I am simply trying to go over the crucial basics. As you read through this article I want you to do one thing. Just read. I do not want you to take notes or worry about remembering any specifics. If you do not understand something, skip it.

A lot of people will spend several pages introducing the Forex by giving an historical perspective. For a Beginning Forex trader, this is a waste of time. It is interesting to learn about the who, what, when, where and why of the Forex. Historical knowledge about the Forex will not help you to become a Forex trader! 

I will make one important point before moving forward. The Forex plays a vital role in the world economy and there will always be a tremendous need for the Forex. International trade increases as technology and communication increases. As long as there is international trade, there will be a Forex. The Forex has to exist so a country like Japan can sell products in the United States and be able to receive Japanese Yen in exchange for US Dollars.

The easiest point to begin discussing the Forex is by comparing it to the stock market. Most people have a basic concept of how the stock market operates. The stock market is where shares of a company (stock) are exchanged (i.e. bought and sold) by investors. The key principle in stock market trading is to "Buy low & sell High." I don't mean to sound cliché, but it is true.

The Forex operates in a similar way. The Forex is simply a place where the currency (money) of one country is exchanged for another. The main goal in Forex trading is also to "Buy low & sell High." There are simply a few differences between the rules of the stock market and the rules of the Forex.

In the stock market the most common way of placing an order is to buy a share of stock, and sell it later at a higher price. This is essentially what all businesses do. They buy something at one price, and attempt to sell it at a higher price. The Forex is no different. In the Forex market, currencies are always traded in pairs.

Since you have to trade one currency for another, the transactions always involve a "pair" of currencies. The goal of Forex trading is to "buy" the "currency pair" at one price, and try to sell it later at a higher price. There is also another way to make money in the stock market. This "other way" is called "short-selling." Short-selling is simply when you SELL the stock FIRST at one price, and then you try to buy-back the stock at a lower price. The goal does not change - you still want to buy low and sell high. With short-selling, you just SELL the stock FIRST. Short-selling has a much larger risk in traditional stock investing. There are many rules that limit short-selling to serious market professionals.

The Forex does not impose any limitations on short-selling. The risk on short selling in the Forex is no different than the risk of buying in the Forex. I know you may be asking "Why isn't there any risk or limitations on short-selling in the Forex, Brian." My answer to you friend, is that the rules for the Forex are different. I will explain how this works in Fundamental Analysis Introduction for Forex. Until you get to Fundamental Analysis Introduction for Forex, just realize the rules in the Forex encourage short-selling as much as regular buying. Now I have reached the part of this article that excites me the most. This concept will also benefit you more than any other concept you will ever learn
about the Forex. I have a question for you friend: How often do you think that the foreign exchange rates change? Think about this for a moment before reading on. Have you thought about it yet?

OK friend, how often do you think they change? They have to change sometimes,right? Did you say monthly? How about Daily? You might have guessed hourly,but you would still be wrong. I hate to tell you that you are still wrong if you guessed that they changed every minute. The true answer is: Forex prices change every second to every fraction of a second!

You have just been exposed to a great concept. Read it again. I know you probably already knew this fact. Even though you already know the answer it will benefit you to think of it deliberately. The only thing you need to know for sure is that the currency exchange rates will continue to fluctuate continuously while the
Forex is open. Opportunities to make money are created continuously. You do not have to worry about how much these rates change at this point. The rates change by varying amounts at various times. The important idea that you need to understand is that as the prices fluctuate every second, you have new opportunities developing to "Buy Low & Sell High". The Forex even allows you to short-sell. You can make money in either direction.
Insider Secrets of Online Currency Trading will fill you in on strategies to take advantage of these fluctuations. The way the Forex is structured allows you to profit enormously from small price fluctuations. On a 1% price fluctuation, you can make a 200% profit. This is due to the leverage of the Forex (discussed in Forex Demo Account Setup).

One of the most common questions that people ask me is "If people are making money by trading the Forex, why would they share this information with anyone?" I'm glad you asked that question Friend. The Forex has a DAILY trading volume of around $1.5 TRILLION dollars. That is 1,500 Billion! This means that 1,498,574 skilled traders could each take $1,000,000 out of the Forex every day, and the Forex would still have more money left than the New York Stock Exchange every day! The potential exists for Forex profits. So there is plenty of money for plenty of traders to use the same trading techniques and profit immensely.

I am getting excited about the point you are at in your quest for Forex knowledge. So many people try to cram too much new information into your brain on their first contact with you. I have broken these articles into small chunks so you do not feel overloaded with info.

In Forex Trading Systems Exposed you’ll learn the answer to the question: "Can you trade the Forex for free?" I will show you what to look for in a Forex trading course! You will also be amazed at what you can do for free. I will also give you tips to avoid being duped. The next article will save you precious time and trial and error. P.S. If you have any questions, please write them down.