Forex as a full time job

Foreign exchange trading has become part of many people’s lifestyle helping them to make a fortune or fulfilling their everyday financial needs. Forex is the biggest and most liquid market in today’s world valued approximately two trillion dollars every day which is thirty times the value of NASDAQ stock market and New York stock exchange put together. The foreign currencies in forex trade takes place between banks, foreign currency dealers and forex investors. The word forex market does not actually mean a real market as there is no centralized location for the trading activity. Trading is done through computer terminals and telephones by thousands of people everyday facilitated by brokers who counsels the investors on buying and selling.

This scenario was not all that rosy for the small time investors some time back. Forex was mainly done between banks, financial institutions and Traders with millions of cash. Forex trade was not available to small time speculators until recently as it required large minimum amount of minimum foreign currency transaction then. But nowadays people with internet on their computer and few hundreds of dollars can become a forex investor tomorrow with a few calls. But the easiest part in forex trading ends there as doing a successful forex trade is completely different from doing forex trade.

One has to be very careful in taking trading in forex as full time job as emotions run high if his or hers daily needs depends on the success of the trade. It is not wise for anyone to quit their job and jump into forex trading with everything at stake. Starting the trade with small stakes and as a part time job is an intelligent decision to make. But if a person is confident about sensing the market’s pulse they can straight away go full time on forex trading .As they say in most forex based articles “trend is your friend” is a quote to follow for every forex investor. Judging the trend is the most important virtue in foreign exchange trade. These days there are plenty of computer software which claims to do that judging, like forex killer or forex avenger, but it cannot equal a human’s ability to consider factors that can’t be broken down to numbers and semantics. But these software products can be handy by making the transactions at the desired currency value when a person is not available in front of computer.

Understanding the basics of forex trade is simpler than stock markets .the transactions is done in pairs of currencies known as crosses. The five major currencies that are dominating the current forex market are the U.S. dollar, Eurocurrency, Japanese yen, Swiss franc and British pound. The transaction method is when an investor buys euro/USD in forex spot market he expects the euro to increase in value against U.S. dollar .Similarly selling euro/USD means that the investor is selling Eurocurrency against U.S. dollars. Of the five major currencies U.S. dollar is the most dominant as it figures in one side of 83% of transactions worldwide.

Over the years forex trade have made the world economies become more interrelated influencing supply and demand factors of the currencies worldwide .This trade can help people make a fortune or reduce their lives to bankruptcy without a moment’s notice.