What is Forex and How to make money with Forex (summary)
This is the final summary post on forex and how to make money with forex. The next series on Ideas on how to Become Rich will be on various rich people, because one of the key ideas on how to become rich will be looking at rich people, like Warren Buffett and Bill Gates and then finding out how they became rich or looking at various perspectives and methods of earning money or making value through stocks and the like. Simply put, the next series here on this money making blog will be case studies on the rich and famous, especially my favourite Warren Buffett. (Yes, I've mentioned it before, I am a bit biased.)
Here are the links to the various articles on forex:
What is Forex and How to make money with Forex
What is Forex and How to make money with Forex 2
What is Forex and How to make money with Forex 3
What is Forex and How to make money with Forex 4
What is Forex and How to make money with Forex 5
The first post details the introduction to forex for beginners. What is it, and how can it make you some money and how do you become rich by dabbling in forex?
The second post deals with words and phrases, vocabulary if you must call it that, associated with forex and trading currencies. The vocabulary is important in the acquisition of forex knowledge and a basic working knowledge of forex.
The third post details the reasons why you should choose forex as an avenue for making money. Why should you choose forex over making money using the normal stock market or the other investments detailed here in this money making blog?
The fourth post deals with fundamental and technical analysis. In fact, one of the key ideas of investment, for both forex speculation/currency trading and investment using the stock market, is the difference between fundamental analysis and technical analysis. Fundamental analysis and technical analysis are key to investment, be it stocks or forex.
The fifth post is basically about strategies for forex and strategies on how to make money with forex. All these articles are basic introductions and ideas on making money and do not represent information that you can immediately and directly use on the forex market. These articles and posts here on this money ideas site are for you to learn about forex and then get an inkling of the various possible ways that one can earn money.
This last post on forex is a summary, so that it is easier to get a gist, and also so that it is easier for beginners and learners to navigate around my site and see and learn the various ideas and concepts for forex here. Forex can be a very lucrative and money making venture for some, and hence a basic and sound grasp of forex fundamentals will prove vital. Come to my site here and learn about forex and how to profit and make money from forex!
From the next post onwards, case studies on the rich and famous, so that we can glean lessons and ideas on how to become rich.
What is Forex and How to make money with Forex (summary)
What is Forex and How to make money with Forex 2
What is Forex and How to make money with Forex 2
In Ideas on How to Become Rich, we have now explored a new fields, called foreign exchange, and we will be looking into forex for ideas on how to make money and become rich.
Forex is basically the trading of currencies, and the trick is to make use of the discrepancies in currency values and prices in order to make money. Conceptually, that's easy enough for using forex to become rich, but there are of course many complicated technical details.
This section may get a little boring because it does not dive into forex right away but deals with terms and words associated with forex. All research is mine and I utilised the following resources on forex because I knew little about forex before researching into it on a major scale. Education is key to understanding forex as it is indeed a viable way to make money and might be the key to your financial success. The best educational resources for forex, and for beginners to forex, are:
articles on ezinearticles.com , of which one of the contributors to other financial and investment articles apart from forex, is myself (yours truly) and http://www.babypips.com/school/the_skinny_on_forex.html for complete beginners.
I do the research and the writing and the synthesis to save you time and effort, and then you can access the information and resources to make money and ideas all here on my website. My advice for beginners to forex is that the ezinearticles are only worth reading once you have learnt and mastered the basics, because most of them are actually advertisements for online programmes and other types of software that help you make money doing forex. That is to say: know what forex is first, learn all you can about forex, and learn strategies and moves for success in forex, and then currency trading will be a money spinner and money earner for you. Then read ezinearticles.
Definitions and terms associated with forex
long = buy
short = sell
These two key terms are the basics of forex that you definitely need to know.
the bid = the price at which you will sell
the ask = the price at which you will buy
the spread = the difference between the big and the ask
rollover = this depends and varies from firm to firm, but the main thing is: there is a rollover interest rate that a trader either pays or earns
demo trading = doing trading using a fake account that simulates a real account for forex
pip = the most common increment of currencies, the last decimal place of a quotation - don't worry, all forex brokers will do this calculation for you, and besides my brother doesn't know what a pip is either!
lots = forex is traded in lots, where a lot is $100,000 normally - you might have to confirm this as it may vary from country to country
margin = also known as the account margin, this is a minimum forex account size
margin call = the broker will call you when your account falls below margin requirements, so that you have to put up the difference
market order = order to buy and sell at the market price
limit order = order to buy and sell at a certain price
stop-loss order = is a limit order linked to an open trade to prevent additional losses
GTC = good till cancelled order - active in the market till you cancel it
GFD = good for the day order - active till the end of the trading day for forex
OCO = order cancels other order - a mixture of limit or stop loss orders
More to come on forex and how to make money with forex in future posts here on Ideas on how to become rich.
