The Forex for Dummies

The Foreign Exchange market, more commonly called the Forex, is a market open to all where it can be highly profitable for individuals to invest, even ‘Forex Dummies’ who lack experience or knowledge as seasoned traders in this sector. So how does the Forex actually work? This is what we shall look at closely here in this article with some basic explanations on Forex Trading and some advice for obtaining the assistance you need, and the necessary tools.

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The Forex for Dummies
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
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The operation of the Forex for Dummies:

When we trade on the Forex, we speculate on the movements in the exchange rate of a currency pair. For example, when we speculate on the EUR/USD this means we speculate on the rise or fall of the value of the Euro compared to the value of the U.S. Dollar.

Using the online trading platforms offered by the Forex brokers, to make money on the price movements you simply need to buy a certain quantity of one currency pair at a given rate and wait until the price rises or falls to resell your position and cash in the difference between the rate when you subscribed and the final rate.

Of course, this operation has a cost, called a ‘spread’, which corresponds to a slight difference between the purchase and sale price of your currency pairs and their real prices.

 

How to start trading when you know nothing about the Forex:

If you are not particularly gifted when it comes to market logic and know that chart analysis is not for you then do not worry. With the development of online trading platforms, the opportunity to speculate on the Forex is now available even to total beginners and the online brokers do all they can to offer simple but effective solutions and thereby enable individual investors to make profits without any prior knowledge whatsoever.

There are, for example, managed accounts whereby professional traders trade in your place, also there exists automatic trading software which takes positions for you without you having to lift a finger, and there is also social trading that enables you to simply copy the strategies of expert investors on the trading platform that you have chosen from among the best.

As you may have noticed Forex solutions for Dummies are numerous and varied. All you have to do now is simply choose which broker you will use for your investments and make your initial deposit.

 

The ″extras″ of our site Forex for dummies

Our site Forex for dummies compares the different trading platforms, or brokers, for you giving details on their methods of payment, bonuses and minimum deposits to help you make the best choice relative to your budget. The detailed comparison of these brokers will also help you profit from the most interesting welcome offers.

Our section ″Forex Affairs″ that we strive to make more interesting and complete every day will help you keep an eye on the important events that affect the Forex. We endeavour to report this news with a maximum of analysis to advise you on the positions to take. Of course, the advice we give you does not guarantee the results of your investments but are in fact simply opinions that you can decide to follow, or not.

We would equally like to note that all the information that is given here, for dummies as well as non-dummies, is entirely free and we require no financial participation in exchange for our advice and analysis. The aim of strategyforex is above all to accompany beginner traders towards success on the foreign exchange market. We hope that in doing so we can encourage your investments and help you, like so many other traders throughout the world, achieve some great profits even if you are a stranger to this sector.  

 

Some advice before starting:

Here is some useful practical advice and tips for beginners to the Forex:

  • Trade only on the most popular currencies, therefore the most volatile.
  • Remember to place stop and limit orders to ensure you make the maximum profits and limit your risks of losses.
  • Trade only on the current trend.
  • Use the free trading signals that are generally offered by the online brokers.
  • Make the tools and assistance offered by your online broker work for you.

 

How to learn about Forex if you are a dummy

As we explained previously, the Forex market is not just for experienced investors, it is also eminently suitable for beginners that are curious and wish to learn easily. Therefore even if you are a financial dummy you can still easily learn about the Forex through the trading platforms and their specially created tools and support. Here are the different solutions available to you:

  • Training articles online: All brokers supply a variety of articles and information online that enable their traders to learn about Forex trading, these are generally eminently suitable for total beginners. In the form of videos and webinars too, this support is both fun and practical.
  • Personalised training: By paying a fee or by opening an account with a significant deposit you can also benefit from personalised training with the accompaniment of a true investment professional of the Forex market.
  • The demonstration accounts: Parallel to your theoretical apprenticeship you can use a free demonstration account to learn under real conditions before definitively launching into real time trading with your money.

Starting on the Forex without any real knowledge:

With the eToro trading platform, its unique system enables you to allow the best traders to take position for you so you can launch without risk into the Forex adventure!

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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.