How does making money off trading currency really work?

Question

I'm quite interested in this but something just doesn't seem right.. Do I have as much of a chance getting into trading stocks? Explain!

Answer 1

Participating in the forex market is no different from trading in the stock market. You open an account, fund your account, and you are on your way. In fact, you can open a forex trading account with less money as compared to a stock trading account.

Making money from your trading, either in stocks on in forex, is an entirely different question. Not everyone will make money.

The reason people think trading foreign exchange is high risk is because you are speculating and not investing.

In the stock market, when you buy shares of stock and it goes against you, you can hold on to that position since you own those shares. You can choose to not sell at a loss. No matter how long it takes, its price MAY eventually go back up.

It is entirely different trading forex. You are speculating, and not investing. When the exchange rate goes against your position, eventually, you will have to close that position at a loss unless the rate goes back in your favor.

Good luck!

http://jsforex.blogspot.com

Answer 2

First trade through demo account ,You will know how to trade

Answer 3

http://www.forex-ratings.com/

Answer 4

People like investing in currencies because it can, on the surface, be less complicated.

Most normal investors wouldn't stray beyond the top 5 to 10 currencies, so right there the complexity is greatly reduced as compared to stocks.

There are a lot of websites that have really tried to pick up the average investor's interest in trading currencies.  By no means is it actually easier to make money.

Trading currencies, like trading stocks is highly risky.  If you do your research and invest for the long run, you'll have a much better chance of beating the market.

Answer 5

You can trade on a demo to get the idea. You can also use my free signals on your demo account

http://finance.groups.yahoo.com/group/fr...