Tuesday, January 13, 2009

Getting Started in Forex Trading

Well, I made $30,000 in the Forex market today! Yeah right, wouldn't that be nice... Actually I have no idea what I'm doing, but Forex trading is sounding kind of interesting. So, I figure I'll learn a little about it.

If you don't know what Forex is, it's the Foreign Exchange markets where currency is traded. Basically when currency needs to be exchanged for different kinds (like dollars to euros), it's done through Forex. The idea here is to take my U.S. Dollars, trade them for Euros when I can do it 'cheaply' and then convert them back to dollars later, and make a profit doing it.

Here's an example (not entirely accurate given current exchange rates): I take 100 Dollars on Monday, and given current economic conditions, trade them for 75 Euros. The next day, economic conditions change, and I can trade 75 Euros for 125 Dollars. I do so and, in turn, pocket a 25 dollar profit.

Now, this really happens on a much smaller scale, fractions of a cent (called pips), and much faster, minutes or seconds apart between trades.

There are all kinds of sites for learning, practicing, and brokering Forex trades. I'm going to begin learning how, right now. Hopefully by the end of the month I can begin practice trading. And, by the end of the year, I'll be the richest person on earth, owning my own private island (or at least be up $50).

If you're interested in learning how to trade on the Forex market, check out these sites that I'm looking at:

http://www.forexpeacearmy.com
http://www.babypips.com

Let me know about any experiences you've had with the Forex.

2 comments:

Trevor said...

My heart nearly stopped when I read the first line of your post! :)

Love the blog! Just found it via BlogCatalog! Keep up the good work, and I'll be visiting often!

Loan Modifications said...

hahahah...forex is actually a game of chance market. You loose today but will win the following morning.