Saturday, January 16, 2016

The World of Forex and Gold Trading

Trade is the exchange of goods and/or services. International trade is simply the exchange of goods or services across national borders (e.g. American car sold to a Canadian dealership). Foreign exchange trading, aka forex trading, is the trading of currencies. This is called foreign exchange because it is an exchange of foreign currencies. Gold trading is the purchase of gold by someone for the main purpose of investing.

Foreign Exchange, aka Forex Trading


 - Foreign exchange trading happens daily.
 - It is estimated by multiple major banks that the amount of money that exchanges hands daily due to foreign exchange trading is far over $5 trillion US Dollars.
- The amount forex deals with daily ($5 trillion USD) is about 5 times the amount the New York Stock Exchange deals daily.
 - Historically, foreign exchange has not been very common; most money in history has been of precious metals such as gold and silver.
- Despite the previous point, certain people in Biblical times sometimes exchanged currencies that were used then, and took a tiny commission for themselves.
 - The exchange rates for Foreign exchange has been quite lenient since 1971, when the US government decided that the US Dollar should not be fixed to the $35 per ounce that was decided in the Bretton Woods agreement in 1944.
- Forex trading is everywhere. The currency exchange centers at airports are excellent examples
- In the US, Alexander Brown & Sons, a leading banking firm, traded foreign currencies around the era of 1850, and was possibly one of the largest in the world at the time.
- In 1880, Forex is considered to have begun, due to the fact that the gold standard was just introduced.
- Deutsch Bank is the largest foreign exchange trader (forex trader), in terms of market share.

What is Currency Manipulation?

If you read stereotypical political talking points, you will know many people (like Mitt Romney), have called China out for currency manipulation. What currency manipulation is very similar to the Foreign Exchange Market. Basically, it is setting your exchange rates really high (6.2 yuan is 1 dollar, but the Chinese may want to sell 5 yuan for 1 dollar). This is the root cause for their currency going to extremely high values in the past 5 years.

Gold Trading Facts

- Gold trading is effective because gold doesn't change value, while paper money in relation to goods does. When there is inflation, an ounce of gold will still be the same, while it'll equal more dollars when sold.
- Gold bullion is cheaper than coin
- Most gold bullion is not pure gold, which is 24 karats. Most bullion are 22 karat gold.

Gold Trading Companies

Most Major Banks sell gold as well as help you store them.

Gold Trading Advice

You should buy at a time of deflation, when paper money in relation to the goods and services provided by the market is more valuable. Then, the amount of gold you get per dollar is more. Then, when there is high inflation, sell the gold, because you will get a lot more cash in return. If you do this in a loop, you surely will be making money, although it certainly takes time.

Stocks Trading

This is the form of trade/investment that people love to try, although few succeed, since stocks are extremely unstable, and can skyrocket or drop like a rock at any time. This doesn't require large amounts of money to get in, unlike gold trading. However, most people invest large sums in stocks, hoping to get rich.

The general consensus relating to stock trading is that to buy during times of recession, when all the companies are worth less, and so are their shares. Sell when the economy is in a time of prosperity. This is when all the companies are doing well, and when all of the shares are worth way more. This is how most attempt to become rich. Sadly, some companies just become private (Conexant) and buy back shares at very low rates, and you become poorer.

Which form of trade is right for me?


The answer to this question depends on one sole factor. If you are willing to take many risks, sleep very little for some nights, but want a more possibly better end result, pick stock trading. If you want to have a stable option, and don't want to stress out, pick gold. Foreign exchange (forex) is pretty complicated, and this would probably require you to meet many internationals who have foreign currencies. Basically, unless you have an international presence, forex is not right for you. Which ever way, you have an excellent and almost certain opportunity to become more financially wealthy.

Sunday, January 3, 2016

Forex Trading Facts You Always Wanted To Know

Forex trading is becoming ever more popular as a way of generating an income. In fact, the number of people trying their hand at forex trading has doubled over the last decade thanks to the rise of the internet and the ease with which it is now possible to access the money markets. The reality of forex trading is that it is much simpler than traditional trading of stocks and shares with investors being more likely to achieve success. It is no wonder that an increasing number of people are looking to find out forex trading facts in order to take advantage of the liquidity in this lucrative market.

Make money in dubai with forex trading

What Is Forex Trading?


Although it sounds complicated, the reality of forex trading is that it is simply the use of foreign currency exchange services to buy and sell money from different countries around the world. People have been exchanging currencies for years when making business transactions abroad or when going on vacation, however it is only recently that the potential of this market has been realized as a way of making profits.

Why Is Forex Trading So Popular?


There are several reasons why more people are choosing to try forex trading:


1. The forex market is open 24 hours a day, unlike the traditional stock market, allowing traders to fit their investments in around their everyday life.

2. No complex knowledge is required, unlike traditional stocks and shares trading. Only a basic awareness of the financial and political situation in the world is necessary to be able to make sensible predictions about the way a currency will swing.

3. The reality of forex trading is that it is less risky than the traditional stock market as a single trader cannot influence its outcome due to the enormous sums passing through every day.

Euro Dollar Sign

Forex Trading Facts


Anyone considering investing in foreign currencies should be aware of several forex trading facts:


1. Forex trading is always done in currency pairs. The most popular ones are US Dollars/Euros, Euros/Pounds Sterling and Euros/US Dollars.

2. Trading is done in lots or micro lots. A lot is generally considered to be 1000 of a currency unit. Experienced traders may wish to trade in large sums, often up to 10s of 1000s of a currency unit.

3. Trading can generally be done by telephone or via one of the many online trading platforms offered by forex brokers.

4. Forex brokers offer different account types to their investors depending on their needs and experience. Novices can generally open a basic level account in order to develop their skills while the most skilled investors can take advantage of a higher level, high rolling account.

5. Leverage is an important concept in forex trading. Forex brokers may offer a different amount of leverage depending on a trader's account type, and this enables the investor to effectively borrow money from the broker in order to benefit from the fluctuations in the market.

6. Forex brokers offer different pip spreads depending on account type. This is the difference between the buying and selling price of a currency.