Trade with currencies is one of the many ways to trade nowadays. It has its own strategies and specifics, that makes it quite different than stock trading for example. In this article, you are going to find out what exactly the currency trading is and how can you be successful in it.
The name currency trading (forex) is really self-explanatory. In this kind of trade, we exchange currencies and we make a profit as the value of one currency increases compared to others. Most of the time this is really hard to predict and around 80% of the newbies lose money, which makes the currency trading not that friendly towards the newcomers. The markets change all the time and there are a few hours in which the currency trading is most active because two markets, situated in different regions work at the same time for some time, most commonly 1 hour or so. This is the time when you can either win or lose the most.
Since the market does not remain the same for a long amount of time, which can be quite stressful and hard to follow, there are some tips which can help you be more confident in case you follow them closely.
Currency trading is unique and compared to other kinds of trading, for example, the stock trade. While trading stocks and shares involves not that high risk for something to go wrong, it does not have the liquidity of currency trading, allowing you to either gain or lose money faster. As mentioned before, trading currencies is harder for newcomers, it is still possible to gain profit out of it if you do your research, even though 80% of beginners lose money on their first trades.
The taxes are usually lower when trading currencies compared to the stock markets, which is another advantage.
Currency trading offers a wide variety of tools to help you make a profit without consuming all your attention. There are plenty of sites, offering demo accounts, which can help you get experience without investing any money whatsoever! Some of those useful tools keep track of the value of the currencies and this could potentially save you a fair amount of money, which is great!
Since most of the pros can be tricky, it all comes down to experience and knowledge about how the currency trade market works and even then you are not 100% safe! As we already mentioned only 2 out of 10 beginners manage to make a profit out of trading currencies, you should really think twice about that.