FOREX WINNERS: PRINCIPLES AND MYTHS
principles and myths of ForexToday, we will consider one of the most controversial ways to generate income on the Internet and try to answer the question - how to make a successful Forex market. The essence of this kind of earnings is the extraction of profits from the purchase or sale of different types of currencies (most often) or securities. The idea of earning money on forex is based on the so-called principle of "market" trade: we buy something cheaper and tend to sell it as expensive as possible, placing the difference in our pocket.
Or vice versa: we already sell an existing thing as much as possible, and on the money we buy two or even three similar ones. On the forex there are the same operations, only the subject of sale are money.
A trader (a person who trades on forex) chooses a currency pair (two kinds of currencies) in which he will earn. After determining the currency pair, the participant must determine what will be his earnings, the fall or raise rates. Depending on this, traders on forex are divided into 2 types - "bulls" and "bears".
Players who buy currency, with the expectation that their value will soon increase, and they will be able to sell it at a more affordable price to earn.
On the contrary, they sell the currency they already have, wait for it to fall in value, and then buy it for the money it's got, just a few times more expensive, getting the opportunity to earn a reduction in rates.
KIM TO STATE: LEADER OR BIKE?
What kind of tactics is better to choose a trader to earn on forex depends on the currency pair he chose and the political situation in the country where these currencies are rotated. For example, if you choose a pair of euros, then it is worth determining which political, social and the economic situation in these countries. The economic crisis, war, catastrophe, natural cataclysm - all this is a harbinger of the fact that the course of the currency of the country in which these disasters occur, will fall.
Therefore, if you have a lot of it at the moment, then you should immediately get rid of it, selling it more expensive, since in the future it may be its "fall" and you will not be able to earn an earnings of such magnitude as decreasing the rate.
If the country should be building or opening a new strategically important facility or enterprise, then most likely, the currency exchange rate on the forex will rise, so it's worth buying cheaper now to earn after raising the rate and multiplying their finances. Of course, we have brought simplified situations of the economic situation in the country, which may affect the fall or rise of the value of the national currency.
In reality, it is impossible to predict the situation on the forex market only in one event, apart from everyone else, in order to earn. For more accurate forecasts, there are special scientific methods for forecasting future values of the value of currencies in the trading market, without which study earned for beginners in forex becomes a complex and obscure process. Therefore, before starting a game on forex and investing your money, it is best to get acquainted with the basics of market analysis of currency rates in order not to get into trouble.
Otherwise, you can not do nothing to earn nothing, but at all to lose the money invested without returning.