Learn How To Choose Forex Trading Strategies That will Work Best For You

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My Forex Trading World
Financial Freedom

• http//www.myforextradingworld.com

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So, what do you do?
Im working as a trader in a boutique Forex
company, I replied as I always do when people
ask what I do. When I got that blank stare Im
used to get, I went on, You know, Forex, foreign
exchange, currencies. Ah! Alright, got it, he
said. So, you trade currencies?
Forex Trading, Trading Strategies, Forex Trading
Basic
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So, what do you do?
Alright, got it, got it. So youre like one of
those guys in the airports. You get the dollars
and give back the local currency, right? he
chuckled with a little bit of pity in his voice
imagining me behind one of those
counters. Yeah, kind of like that, I replied
in a defiant tone. I had no interest in trying to
tell this VP of finance for a multinational
company that his budget has decreased 1 since
the party started due to comments by the Japanese
finance minister half an hour ago. I just hoped
the poor guy in their treasury departments night
desk didnt lose too much money due to the
volatility
Forex Trading, Trading Strategies, Forex Trading
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So, what do you do?
Yet basically he was right it is simple. Forex
is where you buy one currency while selling
another. So quotes always have two currency pairs
like EUR/USD, SGD/JPY, etc. The minimum
fluctuation in the price of a pair is called a
pip. For example, the EUR/USD price as Im
writing this sentence is 1.3225. One pip rise in
the price would make the EUR/USD price 1.3226.
However, a pip may be different for other
currency pairs. Most Japanese Yen pairs are
quoted with two digits after the decimal point,
e.g., 99.69 (USD/JPY). A one-pip rise in USD/JPY
would make the price 99.70, not 99.6901. (The
competitive market conditions in the last couple
of years have caused most of the market makers to
start pricing pairs in one-tenth of a pip,
effectively adding a decimal place and a higher
level of precision.)
Forex Trading, Trading Strategies, Forex Trading
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So, what do you do?
Forex markets have some characteristics which
have allowed the market boom in the last decade
with improvements in internet technology. Perhaps
most importantly, it is an over the counter
(OTC) market. There is no centralized
international authority or exchange regulating
the market. Transactions in the market are
directly between traders and this flexibility
attracts all kinds of different investors to the
market. Another notable characteristic of this
market is liquidity. Briefly, it is the most
liquid market in the world. Average daily trading
volume is estimated at over 5 trillion in 2013.
Vast amounts of liquidity bring another quality
to the Forex market Low volatility. In most of
the currency pairs, a move of more than 1 is a
rare occurrence and can be easily observed in
daily charts with the naked eye. This stability
actually works against the speculators who want
to benefit from short term price movements. But
this disadvantage is erased by the help of margin
trading. Margin trading allows traders to fund
their accounts for a fraction of their notional
trading amount.
Forex Trading, Trading Strategies, Forex Trading
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So, what do you do?
Toward the end of the party, I was sitting alone
at the bar enjoying my last drink of the night
the woman standing next to the VP when we were
talking earlier approached me and asked
cheerfully So, you are a trader, huh? It must
be an interesting and exciting job. Yeah,
pretty exciting, I answered, returning the
smile. Its fast. You gotta think faster than
the others. I started to dream about the body
under her red dress. I pointed to her empty glass
and asked, Would you like another one?
Forex Trading, Trading Strategies, Forex Trading
Basic
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So, what do you do?
Thanks
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