6. Ada yang bisa tidur begini pas sudah dewasa?
7. Baginya itu adalah lautan..
8. Pelampung racikan nih.
9. CCTV darurat..
10. Mengamankan jemuran.
Anyone that wants to make a living from trading Forex needs to understand the basics of the Forex market to a very reasonable extent. By so doing, there will be a high possibility to make a smooth and profitable Forex career.
It is quite unfortunate that many do not find the time to study the market before investing in it; which has continued to result to losses of about 90% of trades that take place in the Forex market.
In this article, the focus will be on the basic things one must understand before investing in the Forex market, but first, here is a brief history of the Forex market.
A BRIEF HISTORY OF THE Forex MARKET:
The international monetary system has come a long way; from the early days of gold standard system, to this era of social trading.
These improvements were initiated by major market players who came up with theories on how best to approach trades; some of which are still viable to this day. The history of the international monetary system has continued to evolve, and traders need to understand how it works and apply this understanding in their trades.
THE GOLD STANDARD SYSTEM:
The gold standard system is a monetary regime that allows the dominating government currency to be fixed and be freely converted to gold. This system also supports the use of gold or bank receipts for gold to be used as the principal medium of exchange. With this system, gold or gold receipts also serve as a standard of international trades, wherein the exchange rate of different countries are fixed based on the relative gold equivalent values between individual currencies.
Before the advent of fiat currencies, gold and silver were used for payments in national and international trades. A person can give a certain quantity of gold in exchange for a measure of merchandise; that (and some other outdated methods of payment) was the nature of all kinds of trade in the past.
This method of trading had some major issues though. The values of these metals were greatly affected by the rate of global supply and demand. If the demand for gold is high, then its value will be high; but if the demand for it is low, then its value will be low. Also, if the supply of gold is low, then the value will go up, but if the supply is high, then its value will reduce.
A typical example of this is the discovery of new gold mines, which leads to a greater supply of gold, and a reduction in the value of gold metal. This theory of supply and demand is an age long theory that still applies in Forex trading in this present age, even though the gold standard is no longer largely practiced.
The gold standard eventually crashed in the beginning of world war two. But before then, major economic countries have allocated a certain amount of their currencies to a measure of gold (in ounce). And with time, the difference in the value of two different currencies can be gotten by comparing both currencies with regards to the value of gold. With time, international trades were conducted with these differences serving as the exchange rate between two currencies. That was how Forex trading, as we know it today, started.
THE GOLD STANDARD SYSTEM IN THE PRESENT DAY
Though the gold standard has been dropped, it is still an ultimate form of monetary value, and can be relied on as a safe haven for financial stability. The current financial systems are not reliable. The US dollar, for instance, has almost inevitable inflationary implications as a result of increasing government borrowing to print paper money. One of the major implications of this is that the USD has recently developed and inverse relationship with gold metal. Investors have no option but to invest in gold as a way of hedging against the inflations.
Although the gold standard is no longer as widely practiced as before, it still exists. A lot of Forex trading platforms offer gold currency pairs to be traded by their clients, and like was mentioned earlier, investors put their money in gold in order to avoid the implications of unstable economy suffered by most currencies (if not all). Initially, as a beginner, Forex traders are normally interested in trading major currency pairs, which by the way is a really good place to start Forex trading; but as they advance in skills and experience, they tend to invest in gold as a result of the level of stability it brings to the table.
Just like the gold standard system, the Bretton Wood System also played a very important role the history of Forex. It was introduced around World War II with the main purpose of replacing gold with the USD as the main standard for converting the world currencies.
To really be successful at Forex trading, you need to have it at the back of your mind that Forex will definitely pay you well if you’ll only work hard with patience and consistency. The market may already be saturated with traders, but there is always room at the top if you’re willing to pay the price.
Forex is the largest market on earth, with a trade volume of over $4.5 trillion. That is a huge amount of money, but it’s more or less expected when you consider that most currencies, if not all, are traded in the Forex market. People from different locations around the globe take part in it, and it has been in existence since the days of trade-by-batter, when it wasn’t known as Forex.
However, so much has changed since the inception of Forex. In the past, Forex trading was as simple as using gold and silver as a method of international payment (which were usually affected by global supply and demand). These days, prospective traders with the view of a successful Forex career will have to be more specific and familiar with the modern strategies of the Forex market.
Here are questions you must ask yourself if you want to be a successful Forex trader.
1. HAVE YOU MADE UP YOUR MIND?
Before you even register with a Forex broker to trade Forex, you need to make up your mind to do what it takes to be a successful trader; otherwise you’ll just while away your time and eventually quit. You may think that your drive at the moment will see you through Forex ups and downs, but successful and experienced Forex traders beg to differ – human psychology is a major Forex demon.
It is an established fact that human psychology, if not controlled, can ruin a trader.
If you’re not able to control you psychology, that means you allow your emotions to come into play all the time, controlling how you approach a trade. If trades are going well, emotions are high; you’re happy, and willing to continue trading. If trades are not going well, you feel bad, and unwilling to continue.
On the other hand, if you learn to control your emotions and not allow them to come in the way of trade, then you can leverage your psychology in trading. You know that there are bad times, but you also know that they will pass with time.
If you do not have a strong determination to make it big as a Forex trader, it is only a matter of time before you throw in the towel. Every successful trader out there fought the battle of the Forex market, and so should you.
2. WHAT DO YOU KNOW ABOUT THE Forex MARKET?
Just like education is important in life, it is also important in Forex trading. You most likely do not need a degree to be able to trade Forex, but you have to study the proven tactics of Forex to help you trade better.
For you to get it right as a Forex trader, you must understand the following
1. Terminologies used in Forex trading
2. The different strategies applicable and when they can be applied for maximum benefits.
3. Forex time zone
4. Forex brokers
5. Trading platforms and software
6. Forex news
7. Trading tools
A good knowledge of all these and more will put you in a better position to trade the market profitably, even as a newbie.
It is important to note that studying the Forex market is a continuous process so long as you’re a Forex trader. That is the only way you can keep up with the indisputable changes that take place in the market.
3. WHO WILL BE YOUR Forex BROKER?
While you’re researching on what there is to know about the Forex market, take some time out to do quality research on how and where to find a reliable Forex broker. Having a good broker goes a long way to determine if your trades will be successful or not.
To find the right broker for you, you have to first of all select a number of reliable brokers with good reputation based on your regional regulatory compliance. Beware of brokers that are not regulated by authority bodies; they tend to operate carelessly, and they cannot be questioned by anyone; unlike the regulated ones monitored by the regulatory bodies.
Go ahead to narrow your selection down to find out what broker can meet your specific needs as a Forex trader. Most brokers will allow their prospective clients to test their services with a demo trading platform before deciding whether to register with them or not. You’re allowed to experiment with as many trading platforms as possible to help you choose the best broker to work with.
Also take note of the packages offered by the broker and go for the one that best suits you. Be sure to consider the initial deposit, spreads and commissions, leverage and margin, etc.
Never register with a broker on the account of a positive review or reference. There are different kind of brokers and traders, and it is your responsibility to carry out researches to find one that best suits your style as a Forex trader.
4. IS DEMO TRADING REALLY NECESSARY?
A demo account is a “pretend” Forex trading account. It has almost everything you can find in a real Forex account, except that it is not real. It is a simulated platform where traders, old and new alike, can trade Forex for free.
With a demo account, you can
– Trade with simulated money
– Test a broker’s services
– Get familiar with a particular trading platform
– Gain notable experience about the Forex market
– Develop a Forex strategy suitable to your trading methods
– Learn to control your emotions while you trade
So, you see. Demo trading is really necessary.
5. WHAT TRADING STRATEGY SHOULD I CHOOSE?
As a new Forex trader, you’ll be amazed to find out there’s a huge volume of strategies for Forex trading. There are so many of them that it is confusing and stressful trying to find the right one to trade with. A lot of them are not simple enough for new traders, and should be avoided. It is always better to start with the simplest ones and then add to it as you progress in knowledge and experience of the trade.
Understand that you don’t need to develop a trading strategy yourself, especially if you’re new. Choose from a number of strategies designed by professional traders to benefit newbie Forex traders.
Note that it is at your own risk to trade with any strategy; and a strategy that worked gloriously well for mister A may be a disaster for you if you trade with it. To avoid this, be sure to test any strategy on a demo account to see if it’s a good fit.