The question would be not whether she
could but rather would she enter the Forex trading market.
The Forex day
trading arena is a veritable snake pit ripe for scam artists to bilk
money out of unwary investors. On the other hand, it is a forum for
educated traders with the correct education, tools, and trading strategy
to make a handsome income.
Becoming a successful Forex trader basically comes down to four
things; 1) attaining the correct education, 2) using Forex tools which
3) use your own personal trading strategy, and 4) finding the correct
Forex broker to fulfill your requirements. Let's look at these
individually:
Attaining the correct education. Your Mother may not know the
difference between a Forex PIP and one of the backup singers for Gladys
Knight. So would you send her to one of those infomercial Forex riches
classes to find out? We hope not! There are literally hundreds of
training courses and materials out there for proper training. Word of
mouth recommendations might be the best path to follow here.
Forex tools can also do many things like send trading signals
and various buy/sell alerts to your desktop or mobile device based on
what your personal trading philosophy dictates. Many of these tools are
software based and some are provided via your favorite Forex trading
sites. Not all people base decisions based on these signals though and
use things like technical and fundamental analysis to determine when to
buy or sell.
It also is essential to develop your own personal trading
strategy. Your ability to assume certain risks might not exactly be what
other traders or your broker recommends. A Forex trading strategy is
not something generic and involves your personal game plan.
Before trading Forex you need to set up an account with a Forex
broker. You may feel overwhelmed by the number of brokers who offer
their services online. Deciding on a broker requires a little bit of
research on your part, but the time spent will give you insight into the
services that are available and fees charged by various brokers.
One of the most important ways to make the greatest return (and,
also carry a greater loss risk) in Forex trading is with the use of a
margin account. These accounts may let you trade as much as $100k in
currency for as little as $1000. Margin accounts are the lifeblood of
Forex trading, so be sure you understand the broker's margin terms
before setting up an account. You need to know the margin requirements
and how margin is calculated. Does margin change according to the
currency traded? Is it the same every day of the week? Some brokers may
offer different margins for mini and standard accounts.
Used correctly and together, the above items can lead to a
comfortable part or full time income. If you don't use all the
information available to you, though, you may as well let Mom take the
weekend visit to Vegas with her money to see Gladys Knight. Make sure
that she has developed her own Forex trading strategy and has used
"paper trades" many times before actually beginning trading for real.
Better that ole Mom is equipped to make some real money rather than
throwing it away on the gaming tables.
by Wayne Watson
http://www.forexmarketexplained.com
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