The forex market, or foreign exchange currency market, is the biggest financial market in the world, generating a daily average turnover of $3.98 trillion as of April 2010; this reflects a growth of 20% over the $3.21 trillion daily volume as of April 2007.
When you learn to trade forex you are learning to trade the market that is literally the closest to the ideal of “perfect competition”, with the only exception being market manipulation by central banks. Therefore, there is simply no better market to learn to trade or invest your hard-earned money in than the forex market; it contains a number of significant advantages over stocks, commodities, or any other market, including the following:
• Dense liquidity as a result of the huge trading volume that occurs each day in forex.
• The fact that you can trade forex from anywhere on earth with an internet connection and a laptop; extreme ease of accessibility.
• You can learn to trade forex at any time of the day, the forex market is open 24hours a day, 5.5 days a week.
• The forex market tends to have strong trends, and trends are where the money is at.
• Very low start-up and operating costs compared to trading or investing in any other financial market.
• The forex market allows the use of leverage to enhance profit margins with respect to the size of one’s account.
How do you got about learning to trade the forex market? If you really want to learn to trade forex in the most efficient AND effective manner, it is going to be imperative that you get this instruction from someone who is already a professional trader. It is possible to learn to trade forex on your own terms, but you are going to have a hard time figuring out what works and what doesn’t; it’s a very long process of trial and error that will ultimately cost you much more time and money than learning from a pro.
One important thing to keep in mind as you learn to trade forex is that it doesn’t have to be difficult, complicated, or frustrating, yet most traders experience these feelings as they learn to trade forex. The most important thing to remember as you learn to trade forex is to keep it simple, if you keep all aspects of your forex trading journey as simple as you can, you will ultimately come out on top. There are many very effective forex trading strategies that are also very simple to learn and apply, don’t waste your time learning trading strategies that cause your head to hurt, instead, stick to the basics, learn to master your emotion and develop strict trading discipline and you will be well on your way to success.