Sharefounders broker experts have prepared a guide for novice traders. So, according to Sharefounders, forex is an international currency exchange market, founded in 1976. In this market, the currencies determine the exchange rates to each other. The large banks, private and public, international businesses, as well as speculators, brokers, and traders, participate in forex trading. The latter use the currency market as a source of income: since currency quotes are continually changing, traders try to make money on the price difference.
Is the forex market equal to a stock exchange?
To some extent, forex is similar to the stock exchange, in a broad sense. A stock exchange is a platform where securities are traded, as well as the forex, Sharefounders writes. Reviews show that there are also some differences from other markets. First, the currency market works around the clock. World banks, which determine the fluctuations of currency quotes, are located in different time zones. As they open, they connect to the internet at different times. It helps to make trading in the foreign exchange market non-stop. Although, there are periods of daily activity, the calm periods, and a few days a year when trading volumes are extremely small - public holidays in the USA, Europe, and Asian countries. Second, the forex market exists only online; it is not tied to a specific location, state or city. This is its unique selling proposition in terms of marketing. Anytime from any location, you can connect the network and get started. Of course, it is a problem for a single trader to enter a large market, because the size of lots in this market amounts to $ millions. To start trading, individual traders need the help of intermediaries - brokerage companies.
Further actions, however, do not differ from the trading on any other market. A trader selects a currency pair (or pairs), opens a trading position, and observes the price fluctuation. If the trader’s forecast is correct, the position closes with a profit, otherwise, the trader loses money and often starts blaming the broker, for example, claims Sharefounders scammers. In addition to fundamental factors, exchange rates fluctuate because of the economic news, policy news, business reports of large corporations, and even natural disasters. But after the exchange rate drops, it goes up again.
How to start real work in the forex market?
To start working on forex, you only need a computer with Internet access. You open an account in one of the brokerage companies and then proceed. Please remember, that due to lack of information, most novice traders lose money and leave the market forever, claiming Sharefounders scam. To make money on forex, it is not enough to read a couple of articles and threads on thematic forums. Indeed, professional traders are already working on the market, and a newcomer will have to compete with them. The professionals are armed with knowledge of the global economy, technical and fundamental analysis. So it’s better to spend time on serious training before risking your money. Start by studying the literature, listen to some training webinars or video courses, and open a demo account. Many brokerage companies have training courses for novice traders. Only after that, you can try to compete with professionals.
How much money is needed to learn to trade?
The good news is that you can learn for free, the knowledge itself can be found on the internet. There is enough information for novice traders that explains the basic concepts and mechanisms of the forex. Sharefounders recommends opening a demo account while learning the theory. Many brokerage companies provide such a service, including the Sharefounders broker. Reviews show that on a demo account, you can learn how to work in the Forex market: install a trading terminal, train to understand the charts, check the system of placing orders, and follow the nuances of currency speculation. This usually takes a month or two if you do it daily for an hour or two per day. When you feel ready to risk real money, you can open a real account via the same brokerage company. As a rule, the minimum deposit is limited to $ 100, and the maximum size is not limited.
Is it possible to lose money in the forex market?
There is one immutable rule in the investment market: the higher the risks, the greater the potential profit, and the higher the chance of losing money. It makes no sense to blame the broker and write that Sharefounders scammers. In this sense, the forex market is not much different from the start-up investment market. If a start-up investor has to choose the object for the investments, an application for food delivery, or some exotic option, for example, a social network for pets, most will prefer a food delivery. Although there are hundreds of such applications, the chances of making a profit are higher.
On the other hand, a non-standard application will bring more profit - in case it reaches the stage of investment return. Absolutely the same rules work in the currency market. If you open small short positions along with the trend, the chance of losing money is minimal. However, the profit from such transactions barely covers the broker’s commission. But if you play against the trend, the risk is higher, but also a potential benefit. Although most often, traders lose money due to the influx of emotions, ill-thought actions, and faith in luck instead of sober calculation. After that, they lose their illusions regarding the forex and broker, claiming that Sharefounders scam. It is also essential to choose a respectable broker. It is difficult without understanding the forex. Sharefounders is a broker that has established a certain reputation among professional traders. Please remember that financial investment in the forex market is a high-risk tool. Therefore, get known to the working conditions and risks in advance.