What is trading on Forex?
• You can make transactions from anywhere in the world – you only need an Internet connection.
• Round-the-clock work – no matter what time zone you are in.
• There is no need to have colossal resources to start investing. If you are a beginner – find an experienced broker and get down to business.
• A significant number of currency pairs.
It is important to understand: Forex trading involves operations with a variety of instruments, not only currency but also gold, silver, stocks, oil, etc.
Choosing the currency as the main asset, the trader chooses in favor of the most popular option, the most liquid and often the most profitable. The investment process is carried out by using currency pairs, each of which is characterized by its movement dynamics.
There is a division of pairs into options for beginners and options for pros. Currency pairs for beginners are less profitable, but they have the greatest predictability. In this case, currency fluctuations are an exception to the rule. Currency pairs for real professionals – this is an opportunity to earn a serious amount and go into a significant minus because in one session the course can vary by tens or even hundreds of points.
If you choose precious metals as a trading asset (gold and silver are the leaders, gold to a greater extent) – you choose a asset whose value is closely related to the general economic situation in the world. In times of crisis, the price of gold can grow, in periods of prosperity – to fall.
However, this type of investment is of a certain complexity, since this market is significantly less transparent and public in comparison with the foreign exchange. Also, it is necessary to have significant expertise in the economic situation for various regions of the world. Therefore, the basis for decision-making, in this case, is, as a rule, a set of indirect factors that have an impact on the precious metals market.
Many of the brokers choose oil trading as the main direction – this is a really interesting and profitable asset; most importantly, you need to remember: having made such a choice, you will be required not only to notice all the seasonal fluctuations in supply and demand but also become a real expert in geopolitics. Oil prices are very sensitive to events taking place in the Persian Gulf region, as well as in other countries that are leading exporters of raw materials. Also, major market players can artificially regulate oil prices based on their interests.
Stock trading is the most familiar type of trading familiar to the average layperson, a concept many have gleaned from cinematographic and literary works. In the most common case, stock trading is the purchase and sale of securities of well-known companies. The main difficulty of this type of trading is the often arising need to work with long-term transactions (the most successful investors in the world work with shares of companies «in the long»), hence the whole complex of difficulties for a novice trader, starting from banal impatience and ending with a lack of knowledge about when is it worth starting the sale of existing shares.
Of course, the final decision on what to trade and how to trade is always yours. The best option is to use several assets at once and conduct transactions taking into account specific trends in the Forex in Belarus. It is always necessary to keep abreast – events in the global economy, natural disasters, military conflicts, major social changes affect the formation of the overall picture, which, in turn, is also quickly responded to by the Forex market. Moreover, even negative economic and political upheavals can be a chance for a profit with a properly built trading strategy.
Thus, Forex is not just a platform where the most successful earn, it is a space for the work of smart and erudite traders with a professional instinct.