TRADING FOR BEGINNERS: 4 Books Learn how to Trade for a Living and Develop Your Expertise on Forex, Swing, Day & Options Trading with Psycology Tips to Manage Your Mindset and Emotions by Mark P. Anderson

Author:Mark P. Anderson [Anderson, Mark P.]
Language: eng
Format: azw3, pdf
Published: 2020-12-04T16:00:00+00:00

CHAPTER 1:

What Is Forex Trading?

F orex is short for foreign exchange and is an exchange of currencies. For example, when you are traveling from one country to another, you will need to exchange your home currency for the other country’s currency. If you live in the United States and are traveling to Europe, you will need to exchange the American dollar for euros.

Forex is one of the largest trading markets. One reason is that each country has a currency. The other reason is that most people understand currency and how it works. Also, everyone participates in forex in some way, be it on an individual or business level. The market is open 24 hours a day from Monday morning to Friday evening.

What do we trade in the Forex Market?

The answer is simple – MONEY. Yes, the forex market is all about money in different currencies. For beginners’ trading in forex can be confusing because one is not buying anything physical, which is why many tend to be skeptical about forex trading. Well, this book will clarify such ideology. You can consider buying forex as when you buy a share in a country. It is similar to buying a company’s stock in the market. The rate of a particular currency represents a direct reflection of the thinking of the market about its present and future health of the currencies economy. Remember the Japanese yen example I made at the beginning? Let us assume you decide to buy the yen, what it means is that you are investing in the Japanese economy by buying a share of the country. In order words, you are “banking” on the Japanese economy that it will do well. You are buying this yen intending to sell it in the market to gain profit.

Generally, the exchange rate of a particular currency against other currencies represents the economic conditions of the economy.

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