DayTrading And Forex Today
Online trading is great way for serious investors to make
money, but inexperienced traders often wind up with big losses.
A good set of instructions can minimize the risks and save
months of expensive trial-and-error learning.
Day Trading
Day Trading had its heyday during the bull market of the
1990's. All the amateurs have since dropped out, but day trading
is still being practiced by professionals. There are fewer
opportunities in the current market, but skilled investors can
still find them if they know what to look for.
FOREX Trading
The Foreign Exchange Market (FOREX), the world's largest
financial exchange market, originated in 1973. It has a daily
turnover of currency worth more than $1.2 trillion dollars.
Unlike many other securities, FOREX does not trade on a fixed
exchange rate; instead, currencies are traded primarily between
central banks, commercial banks, various non-banking
international corporations, hedge funds, personal investors and
not to forget, speculators. Previously, smaller investors were
excluded from FOREX due to the huge amount of deposit involved.
This was changed in 1995, and now smaller investors can trade
alongside the multi-nationals. As a result, the number of
traders within the FOREX market has grown rapidly, and many
FOREX courses are appearing to help individual traders increase
their skills.
As a matter of fact, it's advisable to take FOREX training even
before opening a trading account. It is vital to know the market
mechanics of FOREX, leveraging in FOREX, rollovers and the
analysis of the FOREX market. Due to this fact, potential FOREX
traders would do well to either enroll in a FOREX training
courses or even purchase some books regarding FOREX trading.
There are pros and cons to enrolling into a FOREX course. For
beginners a FOREX course is a rapid method of learning the
basics of FOREX trading. Not much time is spent on history of
the market or arcane economic theories. Often, on-line or phone
support from a skilled FOREX trader is available to answer any
questions. Also, the information is condensed and practical,
often with graphs and charts.
The disadvantage is the price, as courses are more expensive
than a paperback from the bookstore. Also, the course may just
teach the approach of the trader who wrote it, and individuals
have different trading strategies. The student may grow
accustomed to the logic and focus of the teacher without coming
to realise that nothing is predictable in the FOREX market, and
many different strategies will bring profits in varying market
circumstances. Also, knowledge of practical applications may not
be enough, as the FOREX is highly unpredictable and there are
many external factors, such as political issues, affecting the
flow of finances in the market.
The best advice would be to do some background research on the
FOREX market first, and then enroll in a course.