Forex for beginners
So, most of you may have heard the popular term forex either on the evening financial news channels or may happen to read in the daily newspaper. But what exactly Is Forex? Well in simple words, Forex is basically an abbreviation for foreign exchange market. Want to be clearer? Forex Is just a market like any other in the securities sector but with the key feature being its exclusive use for trading among currencies. Traders mostly trade in currency pairs like INR and USD, USD and GBP etc. The estimated size of the forex market is almost around 5 trillion dollars ranking it second in terms of trade by volume market in the world.
The major players in the forex field are the international banks of several countries in the world. The Forex market is an important part of the international trade network by the virtue of its ability to convert one currency into another. This further facilitates global trade. Its daily trade volume and the geographical diversity makes the Forex market unique with its own characteristic features.
Pros of forex trading
The huge volume makes it liquid enough to result in drastic reduction of transaction costs that are involved. Its lower margin of profit amongst various other similar asset classes makes it almost close to the concept of an ideal market. For those who are not familiar with liquidity, its nothing but the measure of transaction happening in a particular time period judged by whether a buyer is able to find a seller at his preferred price. The trend which is generally followed is as liquidity increases, the spread between the ask and bid prices decreases gradually. The case of an ideal market occurs when the market characteristics become so liquid that the difference becomes almost equal to zero.
Operational for 24 hours a day except weekdays, makes it convenient for the traders to trade as per their own convenience. Also, trade being allowed to happen for 24 hours sometimes leads to some interesting situations.
Cons of forex trading
There have been instances when traders’ portfolio has taken a major while they were asleep! (due to currency collapse in other regions of the world). The most recent case was when the Pound collapsed in the Asian time zones in the year 2016 leading to them facing significant amount of losses on their portfolio.
The possibility of using greater amount of leverage opens new frontiers in terms of making large gains for the traders involved. For the newbies, leverage can be understood as a trader’s way of taking a loan in order to bet on his hunch or calculation-based predictions. But it acts most of the time as a double-edged sword which can destroy your financial standing if used in the wrong manner. Hence, we always recommend the usage of leverage feature for those who are just starting out in to trade in the forex market.
1 hour become a pro trader
Legit or Scam?
The website of this offered product has a cartoon depicting major investing firms like Goldman Sachs as stealing people’s money off in huge amounts. But let’s analyse the product itself. They claim to trade similar to that of a bank removing the requirement of a broker in order to reduce cash drag because of commission. Their claim is if you buy their product you can therefore start making money right away. Personally, I kind of don’t believe that to be true. The site has two very suspicious claims that cannot be true rationally in any way.
Their claim is just to apply their pre-formulated strategy and watch the money rolling in your account. Now if making money was as easy as buying a software solution for 35 bucks, then everyone would be easily making millions of dollars every year. That does not seem to be the case as we look around us. We advise our readers to verify the rationality of the claims made by such fraudulent products. I mean if things were that easy, then investment firms would have already shut down their business as we ourselves would have become experts. Also, the funny thing is that the website has limited time discount! Offering exclusively four strategy (‘instead of usual strategies who knows maybe something special is in them that they are able to stay singular’), 7 video (again in place of videos) and even a freaking e-book!! I mean come on guys, let’s be honest no sane person would likely spend his/her money just for getting a fake and fraudulent product such as the 1 hour become pro trader. And wait there is more to it, they even have a DISCLAIMER… stating that Forex trade on margin is highly risky adventure in terms of possible losses. Well I have to give some brownie points to them for that. At least they can boast of having at least one correct piece of information on their website for their potential customers.
Our advice to the readers:
Finally, we encourage you to please keep away from such fraudsters and if possible, report to the relevant authorities. I hope that all your doubts related to 1 hour become pro trader have been answered. Also, you can check out our other articles reviewing independently about various other products.
With regards to forex market, the best teacher or coach for you is experience and knowledge. If you slowly acquire sufficient knowledge regarding how the markets work and apply them to put it to test, you will gradually start having the idea about how this market-place actually functions. As the spread is really small it will take time for you to build a level of skill that will enable you to make significant amounts of profits. Reading some great books, blogs and articles will help you far more than day dreaming about making tonnes of money using similar fake softwares.
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