Forex Trading, short for Foreign Exchange Trading, refers to the buying, selling, and trading of foreign currencies online at fixed prices. The Forex market is by far the largest in the world, trading over $6 trillion in foreign currencies daily. Second, to this beast of an industry is the credit market. Retail Forex Trading is only a small branch of the enormous tree that is Forex Trading, comprising only 5.5% of the overall market.
Retail Forex trading is when individuals speculate (make purchases on the current exchange rate between various currencies) in the hopes to profit off short term spikes in the market of these foreign currencies. That said, have a look down below at some interesting facts, as well as some frequently asked questions on Retail Forex Trading.
How much does the average individual earn with Retail Forex Trading?
While working on a risk/reward ratio, a dedicated trader can earn as much as 15% on a monthly basis. Remember that’s 15% of the initial capital you invested, meaning that if you were to invest $3000, you’d see a return of about $350 on top of your initial investment.
What do you need to start trading?
Firstly, you’ll need to think about how you’ll want to trade. Secondly, you will have to open an account to be able to start trading – this is also where you will need startup capital to be able to invest – anything from a thousand dollars upwards should be fine. Having a decent amount of knowledge about the forex market is also crucial, this will probably be one of the main factors that will determine what your earnings will be.
This is why having someone like a broker whose job is to keep you informed and help you every step of the way might be a good idea – these brokers are extremely educated on everything that has to do with the market and will assist you with all your Forex Trading needs.
What should I always keep in mind while trading?
Time is your most valuable asset! The more time you invest in learning, practicing, and adapting, the more successful you will become. Also, know your limits. Becoming greedy has been the downfall of too many people out there, you sure don’t want to be sitting in the same boat with them.
Compartmentalize your emotions and don’t make impulsive decisions – think it through! Keeping it slow but steady at first is key to growing into the trade and becoming more comfortable with the concept. Knowledge is definitely power in this instance, so never stop learning and keeping up with new tricks of the trade as well as any updates or patterns that may pop up.
Always remember – this is your ship – nobody is pushing you to do more than you can! Start out slow – keep up with the times, grow into the art that is forex trading, and stay alert. Pretty soon, you’ll not only get the hang of things, but you will become a full-fledged day trader yourself!