Forex Trading is the acronym for foreign exchange trading. It simply means the buying, selling of one currency for another over a global decentralized market at determined prices. The Forex market is the largest market in the world with daily trading volume of almost US$6 trillion in 2017.
An easy way to understand Forex trading is when you need to travel overseas, you will probably need to change some local money to the currency of the country you plan to travel to. The money changer would earn a commission from the deal. This simple process is the fundamental concept of Forex trading.
Currency trading market is a 24 hours market from Monday to Friday. There are 3 sessions, starting from Asia, to Europe and ending with the US markets, with a slight overlapping in between. It is always traded in pairs. Currency value is affected fundamentally by demand and supply, politics and economics news from the bigger countries. Retail Forex trading market is solely a speculative market, as no physical currencies exchange really occurs. Every transaction are computer based.
It is very easy for anyone to begin trading in Forex. All one needs to do is to open an account with a brokerage firm, be it local or overseas. Submit some personal documents online and account will be approved in a day or two. Immediately after you fund your account, you are ready to start trading. Whole process is almost fuss-free and idiot proof.
With the easy accessibility of affordable high speed internet in Singapore and globally, retail Forex trading has picked up its pace in our island country with ferocious speed, especially during the last 2 decades. And with it, many Forex schools, both proper and scams have been set up to cash in the demand for the thirst of Forex trading knowledge. Since then, many many Singaporeans have lost much of their hard earned savings in trying their luck in Forex trading, with or without proper Forex trading education. Only a handful few are successful in making it into a money making business.
For any newbies to have a good start, acquiring proper Forex trading fundamentals in an established school is crucial. However enrolling in a good Forex school can be a tricky and daunting task. There are many people who have been conned by schools who offer them fast and quick methods, only to lost their whole accounts almost soon after. Arming yourself with a list of what to look for when deciding which school to enroll certainly helps.
Checking how many years the school has been in operation is important. In Singapore 10 years will be a good gauge. The location of the school and office can also tell much of the credibility of the school. The promptness to show trainer trading results of the past one year is another good pointer. The brand of car the trainer owns and the kind of house he lives in, all good measure of the trainer personal financial achievement, is another crucial point to pay attention to. Speaking to past students of the school is a great way to know if the school is delivering well.
Forex trading is easy to embark on, but to succeed in making consistent profits, acquiring good knowledge, balanced with proper money management skills and a great deal of disciplined psychology is the way to go.