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Forex is a financial instrument, where currencies are traded. It began in 1971, but was then only open to banks and other financial institutions. Now, due to the internet revolution, anyone of us can trade Forex! Today, the Forex market is the largest financial market in the world.
Where stock markets trade shares in companies, Forex markets trade currencies. In the stock market, profit is generally made in one direction - when the value of the share goes up. With Forex, regardless of whether the market goes up or down, profit can still be made.
This is due to the fact that Forex is the simultaneous buying of one currency and the selling of another. Trading Forex is always between two currencies - a base currency and a quote currency. The nature of the market is that when the base currency goes up, the quote currency has to be going down and vice versa. Profiting through Forex is simply the buying and selling of the base and quote currencies.
Let’s say you are trading GBPJPY.
Great British Pound (GBP) would be the base currency.
Japanese Yen (JPY) would be the quote currency.
When GBP (base currency) goes up, JPY (quote currency) would be going down. So to profit, you would simply enter a trade to BUY, which means you are buying GBP, and simultaneously selling JPY.
When GBP (base currency) goes down, JPY (quote currency) would be going up. So to profit, you would simply enter a trade to SELL, which means you are selling GBP, and simultaneously buying JPY.
This is due to the fact that Forex is the simultaneous buying of one currency and the selling of another. Trading Forex is always between two currencies - a base currency and a quote currency. The nature of the market is that when the base currency goes up, the quote currency has to be going down and vice versa. Profiting through Forex is simply the buying and selling of the base and quote currencies.
Let’s say you are trading GBPJPY.
Great British Pound (GBP) would be the base currency.
Japanese Yen (JPY) would be the quote currency.
When GBP (base currency) goes up, JPY (quote currency) would be going down. So to profit, you would simply enter a trade to BUY, which means you are buying GBP, and simultaneously selling JPY.
When GBP (base currency) goes down, JPY (quote currency) would be going up. So to profit, you would simply enter a trade to SELL, which means you are selling GBP, and simultaneously buying JPY.
This basically means that on the charts, when you see that the market will go up, you would enter a trade to BUY, and you would make profit. When you see that the market will go down, you would enter a trade to SELL, and you would make profit.
Of course there is always a risk of making a loss instead.
When you enter a trade to BUY, and the market goes down instead - a loss would be made.
When you enter a trade to SELL, and the market goes up instead - a loss would be made.
In summary:
Enter BUY -> Market goes up -> Profit!
Enter SELL -> Market goes down -> Profit!
Enter BUY -> Market goes down -> Loss
Enter SELL -> Market goes up -> Loss
So it is obvious then, that to be profitable in Forex trading, you need to know the direction of the market.
Of course there is always a risk of making a loss instead.
When you enter a trade to BUY, and the market goes down instead - a loss would be made.
When you enter a trade to SELL, and the market goes up instead - a loss would be made.
In summary:
Enter BUY -> Market goes up -> Profit!
Enter SELL -> Market goes down -> Profit!
Enter BUY -> Market goes down -> Loss
Enter SELL -> Market goes up -> Loss
So it is obvious then, that to be profitable in Forex trading, you need to know the direction of the market.
Well, every time you enter a trade, you have a 50:50 chance of getting it right.
But that’s when you are basing it on chance.
What happens when you are able to understand the behaviour and movement of the market?
Would you take the time to find out more about this financial instrument?
What happens when you are able to understand the behaviour and movement of a market that is worth trillions daily?
Do you think it would be a good idea to attend one of our preview classes?
Email orangeroshanglobal@yesinv.com to find out when our preview classes take place and request for an invitation today!
But that’s when you are basing it on chance.
What happens when you are able to understand the behaviour and movement of the market?
Would you take the time to find out more about this financial instrument?
What happens when you are able to understand the behaviour and movement of a market that is worth trillions daily?
Do you think it would be a good idea to attend one of our preview classes?
Email orangeroshanglobal@yesinv.com to find out when our preview classes take place and request for an invitation today!
