I admit it...I'm a real rookie when it comes to forex training.
That's why I was soooo thrilled when my 16 year old son, Tony, started becoming interested in forex trading.
Most of you are parents, right?
You probably know how difficult it is to talk to a 16 year old teen boy. Especially when they're really only interested in sports and girls - and not always in that order!
So it's usually downright awkward for teen boys to talk to their mom - about anything.
Tony is quite the jock - he's in foot ball, basket ball, and tennis. Thankfully, he doesn't have a lot of free time to chase girls or get into trouble!
That's why I almost fell off my chair when he told me he wanted to learn about forex training and start trading online.
But it sort of made sense.
Tony is a really smart guy and a whiz at math. He probably passed up my math skill level in the 5th grade!
Lucky for his sister, he's able to help her when she needs it.
And she's a year older!
He's been investing in the stock market since the age of 13, and he gets a kick out of watching his money grow.
Plus, he's the banker of the family. He's usually the only one with cash on hand because he's frugal with his money...or cheap if you ask my youngest daughter Maria!
So I'm proud as punch to say the I'm learning about forex training from my 16 year old son!
Low Entry with as little as $50
Trading is open 24/5
No commissions - only spreads
Huge market means that unlimited numbers of people can use this
Profit from prices going up or down
Trade BIG or SMALL
O.K...but I wanted more forex training...like...
The Foreign Exchange market, also referred to as "FOREX" is the largest financial market in the world.
Bigger than the New York Stock Exchange.
It trades a whooping volume of over $4 trillion dollars a day!
Compared to the $25 billion a day volume that the New York Stock Exchange trades, you can easily see how enormous the Foreign Exchange market really is.
It's three times as large as the stocks and futures markets combined.
Not only is the Forex market by far the biggest, it's also the most popular financial market in the world.
It's traded all across the world by hundreds of thousands of individuals and organizations.
The simple answer is Money.
Currencies from every country you can think of. Forex trading is the simultaneous buying of one currency and the selling of another.
Currencies are traded through a broker or dealer (either online or offline), and are traded in pairs.
For example, the euro and the US dollar (EUR/USD) or the British pound and the Japanese Yen (GBP/JPY).
The dollar is the most traded currency, approximately 89% of all transactions, the Euro’s share is second at 37%, while that of the yen is at 20%.
With currencies, you're not buying anything physical, so it can be a bit confusing.
Think of buying a currency as buying a share in a particular country.
When you buy, say, Japanese Yen, you are in effect buying a share in the Japanese economy, as the price of the currency is a direct reflection of what the market thinks about the current and future health of the Japanese economy.
In general, the exchange rate of a currency versus other currencies is a reflection of the condition of that country's economy, compared to the other countries' economies.
The Forex exchange market doesn't have a physical location, like Wall Street.
It's traded over-the-counter (OTC) or interbank market.
Which means the entire market is run electronically, within a network of banks, continuously.
It’s like a Super Wal-Mart where the market is open 24-hours a day.
At any time, somewhere around the world a financial center is open for business, and banks and other institutions exchange currencies every hour of the day and night
Forex trading runs 24/7 Monday through Friday - and rests on Saturday and Sunday.
The most popular currencies along with their symbols are shown below:
Symbol: Country: Currency
USD: United States: Dollar
EUR: Euro members: Euro
JPY: Japan: Yen
GBP: Great Britain: Pound
CHF: Switzerland: Franc
CAD: Canada: Dollar
AUD: Australia: Dollar
NZD: New Zealand: Dollar
Forex currency symbols are always three letters, where the first two letters identify the name of the country and the third letter identifies the name of that country’s currency.
Until the late 1990's, only the big guys could play this game.
Because you needed about ten to fifty million bucks to start with!
Forex trading was originally intended to be used by bankers and large institutions - and not by little guys like us.
However, because of the Internet, online Forex training firms are now able to offer trading accounts and forex training to little traders like us.
All you need to get started is a computer, a high-speed Internet connection, and knowledge!
So that's why Tony is able to jump in the forex markets with as little as $50 dollars.
You make money by buying and selling foreign currency pairs.
For example, you purchase 1,000 euros at the EUR/USD exchange rate of 1.18
Two weeks later, you exchange your 1,000 euros back into US dollars at the exchange rate of 1.2500.
You earn a profit of $70.
The object of Forex trading is to exchange one currency for another in the expectation that the price will change, so that the currency you bought will increase in value compared to the one you sold.
Sounds easy, right?
You can lose your shirt (and then some!) if you aren't careful.
Or if you don't know what you're doing.
That's why Tony has been forex training with a demo account where he can use monopoly money until he's comfortable with his skill level before putting up his own cash.
But he's a FAST learner. His demo account has been doubling in value the past few months. Get a $50K free forex training practice account here...
Forex trading is risky. Because of leverage and margin, you can lose all of your initial investment. And more.
WARNING You should not invest money you can't afford to lose in Forex trading.
Professional forex brokers spend years developing a profitable system and countless hours analyzing charts and trends.
So how is Tony doing it?
According to Tony, there are 3 Golden Rules to follow...
1) Manage Your Money
No one cares about your money more than you do. And Tony is NO exception.
Professional forex traders always limit their losses to 1 or 2%. And they're trading other people's money!
This is rule #1.
If you don't limit your losses, then you are in fact gambling.
Limiting your losses will not only protect your initial capital, but it will make you very profitable in the long run.
If you don’t believe me, and you think that “gambling” is the way to get rich, then consider this example:
People go to Las Vegas all the time to gamble their money in hopes to win a big jackpot, and in fact, many people do win.
So how in the world are casino’s still making money if so many are winning jackpots?
The answer is that while even though people win jackpots, in the long run, casino’s are still profitable because they rake in more money from the people that don’t win.
That is where the term “the house always wins” comes from.
2) Kill Leverage by Choosing the Proper Account
Leverage is having the ability to control a large amount of money using none or very little of your own money and borrowing the rest.
Leverage is common in forex trading.
For example, you can control $100,000 with a $1,000 deposit. Your leverage, which is expressed in ratios, is now 100:1.
You now controlling $100,000 with $1,000.
Let’s say the $100,000 investment rises in value to $101,000 or $1,000.
If you had to come up with the entire $100,000 capital yourself, your return would be a puny 1% ($1,000 gain / $100,000 initial investment). This is also called 1:1 leverage.
Fortunately, you’re not leveraged 1:1, you’re leveraged 100:1.
You only had to come up with $1,000 of your money, so your return is a groovy 100% ($1,000 gain / $1,000 initial investment).
But if you lost $1,000, and were leveraged 100:1, you'd have lost the entire $100,000 investment.
Because of how forex training accounts are leveraged, you MUST choose the proper account for the proper amount of money.
Tony Recommends: (this is what he's learned from forex training courses and from his practice account)
Standard Account: Have at least $100,000 of trading capital
Mini Account: At least $10,000.
Micro Account: At least $1,000
Naturally, Tony has a micro account!
The number one reason new traders fail is because they are undercapitalized from the start and don’t understand how leverage really works.
No matter what the forex brokers tell you, don’t ever open a “standard account” with just $2,000 or a “mini account” with $250.
Don’t set yourself up to fail.
If you only have $250, open a “demo account” and stick with it until you come up with the additional $750, then open a “micro account”.
3) THIS IS THE MOST IMPORTANT RULE
Use an expert advisor when trading.
An expert advisor (EA) is an automatic robot that makes trades for you based on safisticated trading signals.
90% of forex traders lose money. After all, traders are humans. They get greedy, lack confidence, are afraid of what might happen (lose more money), and make mistakes (90% of the time).
Tony learned this first hand when he attempted trading without an expert advisor. He tried to "guess" what currencies would be winners.
He lost $2,200 dollars the very first day from an initial $5,000 investment in his demo account.
That's when he decided to investigate using an automated forex robot for making his trades.
Now, all he has to do is check his account balance and make sure the computer and program are running 24/7 Monday through Friday.
They are developed and tested by a seasoned, successful professional forex trader
The only system showing LIVE CURRENT results
Perfect forex training system to work from home just a few hours each week
Everything is explained step-by-step, so it's easy, even for beginners and those who have never traded before
You don't need much start-up capital to double your money every single month
100% automatic, so the only thing you need to do once it's running is check your account balance.
Over 3,000 users currently reporting profits over $100,000/year.
Can be used to trade a demo account before you invest any real money, so you can get a feel for the market, and the potential of the system
Takes only 10 minutes to set up!
I'll keep you posted on how Tony does when he begins live forex trading.
He's still using the forex training robot in his demo account.
And I have to admit...
Who knows, maybe he'll be able to buy that black mustang convertible after all...or at least, pay a big chunk of his college tuition.
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