A Simple Forex Trading Approach

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A Simple Forex Trading Approach

27.09.2007 18:51 Thursday

Unlike stocks or futures, the Forex market is a 24 hour market. With the ability to trade during the US, Asian, and European market hours, you can customize your own trading schedule. It is a skill that takes time to learn and below are some of the ways you can participate in the Forex Market.

1. Hiring Someone to Trade for You

By doing this, you hire a money manager to make the trades for you, pay them a commission, and pretty much relinquish control of your money

2. Learn How to Do Your Own Trades

This can be quite expensive if you enroll in a workshop, not to mention time consuming. To get you started, I would recommend you get my free forex investment guide. This guide explains how the currency pairs work, the interest you will earn from your trades, and most importantly what to do and when to do it. This free guide is a good way to introduce yourself to the Forex market.

3. Subscribe to an investment trading software package.

In many cases, there will be a monthly fee to use the software but it will also give you access to the tools and education you need to setup your own trading account.

Some people call Forex the "Best Kept Secret in the Investment World" because even though the Forex market is the largest and most liquid financial market in the world, the average person doesn't even know it exists.

A Simple Forex Investment Strategy

It's important to understand that investment software does NOT teach people how to be directional traders. This means you will not learn how to "guess" which direction the market will move next. Neither is most software a signal service.

What you will generally get from software is unlimited access to the internet-based software and unlimited access to training webinars that will show you exactly how to use the software and how to place your trades on various broker platforms. We will show you how to use the software to set up your own account and in just a few minutes a week, you can manage your own portfolio.

There are no charts or graphs to read and no research or signals to follow. You will trade currency pairs which, historically speaking, move in opposite directions and decide when to enter or exit your positions. This investment strategy relieves you from having to watch the markets all night, when they are most active, waiting for a trading opportunity. After you make 3 basic decisions based on your personal preferences, the software will calculate the number of lots to buy along with the corresponding buy and sell points for each currency pair you choose to trade.

3 Ways to Generate Revenue

Buy Low & Sell High
The investment software will use the amount of money you plan to invest, the currency pairs you choose to trade, and the level of volatility that you are confortable with to give you a preset price point to enter into your brokerage account.

Once your account is set up, it will buy or sell a certain number of lots of each currency pair, even while you're at work or asleep. Since we don't know which way the market will go, the price points are preset to either buy low or sell high. You also have the option to receive a cell phone text message or email letting you know that one of the price points had been reached.

What you need to do next is tell the software what happened so that it will give you new buy and sell points to set up again.

Collect Daily Interest
By using this forex investment strategy, you can earn passive income on the difference in interest rates. After your portfolio is set up, you will be paid daily interest on the money you control in the forex market.

When you buy a currency pair, you receive interest from the first currency listed in each pair, and pay out interest on the second currency in the pair.

For example, interest on the dollar swiss would be: USD 5.00% minus CHF 1.36%. The net difference of 3.64% is what you would earn annually. These calculations are done automatically by your broker without any intervention from you. This interest is paid on the money you invested and also on the number of lots you own.

The Power of Leveraging
Leveraging means that for every $1 you use to buy currencies, the broker you are trading through will make available to you as much as $400 to control in the open currency market.

Without question, the potential returns from investing in the Forex market are awesome. The decision you need to make now is how you would like to participate. To get a free copy of my forex investment guide, click the link below.

Adrianne Geyer has a Computer Networking degree and has been a full-time Internet Marketer since July 2000. To learn more about how she helps to educate others, click the following link How To Make Money Online or visit this website for a Free Forex Investment Guide.

Article Source: http://EzineArticles.com/?expert=Adrianne_Geyer
 


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