This piece of article is for people who want to make money in the forex trading. 7 out of 10 traders lose money in forex only the rest 30% are making money just by sitting from their home. Are those few have the inside news or just have knowledge and skill in trading on the forex market.

Forex is volatile you can lose money by trading in very quick time. If you’re curious to step into forex then a good forex trading then a good forex trading education is needed. It’s a fact that foreign exchange (forex market) is not for Newbie’s. But you should sharpen your skills before starting to trade.

How to Learn Forex Trading

Using the web to search good resources to learn the forex trading, you’re doing a right thing. Stick to the following tips before learning forex trading:

1. Basics about FX are quotes and what makes the market move

2. Find a simple way to develop a forex trading strategy with money management

3. With the help of forex trading simulator test your trading strategy

4. Start trading with a mini FX account and feel about winning and loosing real money.

5. Before you increase your trading size, try to trade four individual weeks in a row making money.

The statistics show that most of the people lose the game of trading since they cannot control the two emotional factors the Greed and Fear. The probability of getting a ‘Head’ or ‘Tail’ when flipping a coin has 50/50 chance and this same case might be applied to trading in forex. There is 50/50 chance to either win or lose a trade might occur. Yet, the ratio of profit and loss changes based on the market movements.

Why trade Forex instead of stocks?

The cause to trade in the forex instead of stocks, because the forex is 24 hours open in a day. No restrictions are there in forex market while trading in the short course. You can have an equal potential in a falling and rising market. Trading is done only in pairs in the forex market; the traders constantly have the chance to make big money with a rise and fall in the price of currency of a country. Maybe the advantages of Forex trading have the reply.

Continue Forex Trading for 24 hour a day:

since forex market is open for 24hrs you need not wait for the opening of the market. You just need to sharpen your skills for your success. The Forex market begins at 5.00pm Sunday in New York and then followed by the Sydney, the Tokyo, the Singapore, the Hong Kong, and the London.

The response is quick from you on the market trends when compared to other equity market. Due to the time of trading in forex market the forex trading can be learnt with good efficiency. In free time work on your trades that means you can work as part time investor starting with small capital before being a full time FX trader.

High Leverage Margin:

The Trade margin given by the brokers is of 50, 100, 150, or 200 to 1 of the trade margin.

Through, the given leverage forex traders discover themselves controlling a big amount of money with small cash spend. For instance, a $1,000 in a 150:1 ratio Forex account can provide you the buying power of $150,000 in currency market. Occasionally more leverage can have you more amount of losses. When proper learning on forex trading is not taken by you, the leverage or the margins offered cannot work.

Leverage is a dominant tool for moneymaking, but not to everyone. Leverage is a necessary tool in the forex market, it simply loads up on risk, as many people assume. The average percentage movement of major currency is less than 1% daily, compared to 10% price movement per day of stocks.