Foreign Exchange, or forex for brevity, is a method by which people can do what Robert Kiyosaki advices them to do: to make money work for them.
"The poor and middle class work for money. The rich have money work for them."
So says one of the more important lessons shared by Robert Kiyosaki, the highly acclaimed author of Rich Dad, Poor Dad, which many say is the most significant "get rich" manual published in recent years.
Knowing how forex can benefit you heralds the start of your forex training. This article will discuss the things you ought to know about this form of business in a manner that won't require previous knowledge of the concepts involved.
So sit back, relax, grab a bag of popcorn if you wish, and by the end of this article, you will have a working knowledge on how to profit from this.
Forex Training Lesson No. 1: What Is Foreign Exchange?
Foreign exchange is a kind of investment system where the investor will purchase a certain amount of foreign currency.
Now, here's the deal: every currency will either fluctuate or increase in value depending on the political, economic, and socio-cultural forces at play in the country of origin, and how the said country conducts its relationship with other nations. A country which performs well in all aspects of its sovereignty is more likely to enjoy an increase in the value of its currency.
For example, you want to purchase 1,000 Euros for the current exchange price of US $1,452.22, at the rate of 1 Euro for $1.45 (at the time of this writing). Your goal is to be able to resell the 1,000 Euros for a higher amount of US dollars at a latter time, say, when the exchange rate reaches 1 Euro for $1.80. That will be a profit of $0.35 per Euro sold, or $350 for 1,000 Euros.
Now imagine if you're dealing with bigger amounts.
Your forex training is off to a promising start, don't you agree? This should be enough incentive to make you want to learn forex, right?
Forex Training Lesson No. 2: Sell When It's Hot, Buy When It's Not
If we are to summarize the previous forex training lesson, it would be like this: currency trading is like investing on stocks, except that you will be actually investing on currencies and the nations that publish them.
Don't buy currencies that are selling for premium prices. Chances are, they have reached their peak, and there is nowhere else to go but down.
Instead, look for currencies that are selling for lower prices, but are indicating signs of shooting up in value very soon. For this, you need to commit yourself to study news and current events, particularly information that affect the aforementioned political, economic and socio-cultural landscape of the country that publishes the currency you have invested on.
I really hope that these two lessons will help you to become profitable.
Franck Silvestre, owner of the Forex Training website write articles that help beginners to become successful traders without losing all their money. Discover how the forex killer software can help you today and sign up for his powerful Free Forex tips newsletter now at:
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