As a trader, you would be speculating on one currency increasing or decrease in value against the other. If you are able to consistently get it right, you can make a lot of money very quickly. The new trader who is led to believe that all they need to do is find a chart pattern is going to very soon get a painful wake-up call. Is it too easy to get started? The currency market has extremely high liquidity which means that there is always a lot of buying and selling happening pretty much all the time. Also, a factor in is the high leverage meaning that you can trade a large amount of currency with a smaller amount of capital.
Why so much talk about FX Trading? There has been rapid growth in currency trading over the last few years, and it has become the ideal place for many traders to start trading. Many traders try to go it alone and follow some trading patterns and indicators they find on the internet. There is a strong reluctance in new traders to invest in training because they figure that money can be used for trading.
What these traders quickly discover is that lack of training proves to be many times more expensive. What often then happens is they fall into the trap of buying very high priced training as they judge the value of that training based on dollar cost. My trading started a very long time ago 1990’s ! In fact, it started before the internet existed. A time when most people had no idea what it was like to be a trader. If you had mentioned forex to anyone you would likely have received a blank stare. Well, currency trading is not like you think it is and not like most are led to believe it is.