Question and Answers on Forex Trading.
What is Foreign Exchange?
Foreign Exchange simply stands for Forex or fx. It is also referred to currency market. Foreign Exchange is the simultaneous buying of one currency and selling of another. The currencies are quoted in pairs (e.g. EUR/USD). You therefore buy EUR/USD when you expect the Euro to appreciate as compared to the US Dollar. You can alternatively sell EUR/USD when you expect the Euro to fall as compared to the US Dollar. This buying and selling is done on the forex market. (There is more to it than this though)
Why is the Forex Market so unique?
The forex market is unique because it is the largest financial market in the world. This is larger than all the stock exchanges put together. According to Wikipedia.com, trading in the fx markets averaged $5.09 trillion per day in April 2016.
What are you really selling or buying in the currency market?
We sell and buy currencies. You buy one currency and sell the other simultaneously. Currencies always trade in pairs, when a trader makes a trade they are always long (buying) one currency and short (selling) the other.
How do you make money from the Forex market?
You make money by buying the right currency and waiting for it to appreciate (increase in value), then you sell back for the extra value. You can do same by selling.
Which currencies are traded in the forex market?
There are a lot of currencies traded on the forex market depending on your broker. But the most traded pairs include, EUR/USD, GBP/USD, NZD/USD among others.
Is it real currencies I buy?
No. You are buying an electronic currency equivalent to the real value of the currency traded. It is real currency expressed electronically. Just like buying goods with a credit or debit card.
Do I have to have a finance or economics background to trade the forex market?
Absolutely NO. You don’t have to have any background to trade in the forex market. All you need is your brain and the passion to make money in the forex market.
Can I be profitable trading forex?
Yes. Absolutely. You just have to get the right education and training. Forex trading is a profession.
How do I get involved to trade the Forex Market?
First, you will have to acquire enough knowledge and skill on how the market works and how to make money from it. Then, you have to open an account with a broker and start trading on the market. You can Learn with us.
Where Can I Learn more About Forex Trading?
You can learn forex trading from a professional and reputable source like with michaframp Trading where you will learn everything that is necessary for you to become a profitable trader. You can also learn from the internet but, that would mean filtering the fake and false information and practicing to probably lose your shirt before knowing what you are actually doing.
When and where can I trade this market?
The forex market is opened 24/5. You can trade on the market from Sunday evenings (depending on your location) to Friday evenings. You can trade it from anywhere you want. You just need a smartphone or computer and internet access to access your forex account and place trades.
Do I need a lot of money to trade Forex?
No. With the help of forex brokers, now you can trade with as low as $25.00 (I always recommend at least $200.00). You can even trade with the broker’s money in the form of leverage. But you will first have to invest in yourself by gaining understanding on the markets and how to trade it from a professional, and that will most often come at a cost.
How does the forex market differ from other markets?
The forex market is different because it is a free market. In other words, it is not controlled by any central body. You simply trade with an invisible person through your broker. No one knows who is in control or trading what. All you know is your trade is going to the markets. But stocks, futures or options all take place on a regulated exchange. It is the most accessible and liquid market trading 24 hours, 5 days a week.
How long will it take me to start making money from Forex Trading?
We offer an eight week intensive training on trading the Forex Market profitably. You can start trading a real account afterwards. But you will receive guidance and continuous training from us forever at no extra cost.
Can I earn while learning?
Yes. Absolutely. We share every trade we take with our students. You can therefore place those trades until you learn to analyse and trade on your own. It all comes at no extra cost.
Can I join and learn at my own pace?
Yes and No. You can join the training anytime there is free space. But once you join, you have eight weeks to complete the course package. Our services are on high demand and limited. This is because any student we enroll is given an individual class schedule where you are taught to master and learn our course levels within 8 week.
After the 8 weeks, you wont get the privilege of an individual class. You can only get short meetings usually to review your trading and answer questions you might have concerning your trading journey.
It is therefore advisable to enroll when you have the time within those 8 weeks for the class.
How is your class schedule like?
The class is held twice a week with each session lasting for an hour and 30 minutes. This is when active lessons are taught. However, assignments and short lessons might be scheduled on the other days. But main class is twice weekly on Skype.
Is Forex trading risky?
Yes, everything that has a potential of gains has risk attached. But you minimize your risk by learning to trade the markets properly.
Why Should I Trade Forex?
You should trade forex because of;
- Accessibility: You can trade it anywhere anytime 5 days in a week.
- Liquidity: There is always someone to buy from or sell to you. You are always assured of a trade only if you will place it. Your capital will therefore never get stuck in a single trade.
- Leverage: You can trade with your brokers money. Some brokers offer as much as 1:1000 leverage for their customers.
- Low Trading Expenses: The only expense you pay is your spread which is relatively cheaper as compared to other markets. There are many other reasons why you should trade on the forex market.
- Financial Freedom: With Forex Trading, you get to be a master of your own. There are infinity opportunities to live comfortably from your skill in trading once you learn to trade right. Your job might give you the money but not the freedom to spend it. Forex trading is one of the few ways to be financially independent and have enought time at the same time.
Is it true that trading on the Forex market means trading against big banks and Central Banks?
Yes, Big banks and Central Banks trade on the forex market. But you can do yourself much help and still trade against them profitably by gaining enough knowledge and skill to trade the markets. This would mean learning to analyze the market to trade properly.
Do I have to quit my job and stay by my computer to trade forex?
No. You can be a full time employee and trade the markets for extra income. You can also trade the markets as your full-time job. All you will need is enough knowledge. At michaframp we look at your need and train you accordingly. You can work and trade and you can also only trade after taking our course.
Is it true that 90% of traders fail?
I think so. I do not have concrete evidence to support this claim. But using the number of people I have encounter and their experiences, I can say that a lot of people fail in the forex market. Most people just start funding their account with very little or no knowledge in forex and eventually end up losing everything before looking for professional training. Some are too greedy, others just lack discipline and proper money management. At michaframp Trading, we help you to assuredly become a professional profitable forex trader.
How much can one earn in Forex trading?
You can earn as much as you can think of. But it depends on factors like your win rate, capital invested, risk per trade, risk to reward, etc. Trading in the forex market averages $5.09 trillion per day in April 2016 according to Wikipedia. You can take from this volume as much as you can.
Can I trust forex teachers, coaches and mentors on the internet?
Yes. You can trust some of them but not all. You have to do your own research and ask a lot of questions before signing up for anything.
Should I invest with forex fund managers who promise huge returns?
No. It is always better to do things on your own. Learn to trade and make money. But if that is not possible, then always verify their track record and ask a lot of questions before you invest with anyone.
I am not new to forex but I seem to lose always. What can I do?
First get yourself educated. Losing consistently simply means you are doing some things wrong. Learn how to trade the right way from a professional. Forget your past and decide to learn from the scratch.
I am a full time employee; Can I still trade the forex Market?
Yes. Everyone can trade the forex market. You will have to find a strategy that does not require you to stare at your screens for long or trade on the higher timeframe. You can learn from us how to trade as a fulltime employee.
Is Forex trading very hard?
Yes and no. Everything new is hard to understand. But once you learn from the right source, it becomes easier. It becomes extremely easy when you get professional guidance and have the will to learn and succeed.
If you want to take the step of reaching Financial Power, then enroll on our course to gain the knowledge and skill necessary to trade the forex markets profitably as a professional.
Contact Us if your question was not answered.