December 25, 2013
New Revenue Stream – Currency Trading
It is also about buying foreign currency, the most traded in the international market such as the US dollar, UK pound or the Euro, on a daily basis from the open market. It is sold either the same day or two-three days later when the demand for the particular currency is higher. Though the fluctuation in the currency rates is marginal, the earnings can be on the greater side since currency trading is carried out in the form of bulk. Only registered organizations and banks are entitled to engage in currency trading. Individuals and non-residents of a country cannot engage in currency trading. In some developing countries, only government agencies and banks can trade in currency. No individual can trade currency on his or her own. Normally, it is the federal bank of a particular country that stacks up foreign currency since it buys them in bulk.
There are many benefits of investing your money in international currency trading. First, there are tons of people all over the world involved in the huge and growing international currency trading market. Secondly, trading can be done at any time, day or night. Third, there is a very low barrier of entry.
If you don’t have much money to start out, that’s okay. Obviously, the more you invest, the more you will make. But if you don’t have a ton of money to start out, that’s perfectly fine. You can still engage in trading currency for profit.
For an agency to trade in currency, it has to clear certain stringent norms and procedures. The bank should necessarily comply with the conditions laid down by the federal bank of the country. In many third world nations, only the government agencies and nationalized banks are eligible to engage in currency trading. There have been relaxations in case of certain agencies, which have been permitted to engage in currency trading. However, these agencies are constantly monitored to ensure that they are following the norms are laid down.
If there is one thing you take away from this currency trading tutorial it should be that you need to become an expert in two areas. The first one is to become an expert in technical analysis. Nearly all traders use this tool to help them make their trading decisions so it is very important that you use it also. There are excellent books on technical analysis, as well as high quality classes taught be experienced traders. Technical analysis will help you identify price trends and changes that are developing in those trends. This will help in making decisions to buy or sell and when. You will learn to set stop-loss-orders to limit your risk exposure. When you combine this technical analysis with fundamental analysis you are in a position to make the best decisions. Fundamental factors have a day to day affect on prices and technical analysis can help you see how these factors have moved prices in the past. Past behavior can help predict future behavior.
It is not very common for an experienced trader to lose all their money while trading currency, which makes for another great reason to get involved in this industry. Now don’t get me wrong. Some people do lose money in this industry, however it is a great way of making money quickly and easily if you are knowledgeable, diligent, and have the right tools.
Frank Miller has a Debt Consolidation Blog & Finance, these are some of the articles: Bad Is The Exact Opposite Of Good… Is It? Not With Bad Debt Personal Loans You have full permission to reprint this article provided this box is kept unchanged.
Filed under Forex by Frank Miller