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Forex trading is what I do for a substantial income from my home office in the UK.
The great thing about it though is that technically my office is portable.
Whilst my actual office boasts three laptop computers and three additional 18″ TFT screens attached to a desktop tower unit, in actual fact ALL that is needed to successfully trade forex is a single laptop and good internet connection.
This means I can do business anywhere in the world, and because the forex market operates from sunup New Zealand to Sundown in the US, I can trade effectively 24/5.
To trade forex I choose a pair I am going to research for the time being. I then do my research. If I am trading the Euro against the US dollar (EUR/USD) I will do my homework around this currency pair.
After I have done my research I will open my charting package which maps out data from my broker about the changes in value of the Euro against the dollar.
Essentially, we will see a rising trend if the euro is valued increasingly highly. We will see a falling trend if the US dollar increases in value against the Euro.
My job is to identify places to enter a trade in either direction and close the trade at a profit level, which is predetermined, or before that time, the choice of which is a part of my system. This can be anything from 1 point or pip(0.0001 change) to 93 points or more (0.0093 change).
I place my trades through a margin broker who quotes me prices similar to what the banks are seeing as well. This amazing middle man also gives me leverage so that I can control 100x the amount of currency than my actual funds have, because I am covering what is known as the margin.
This above fact is one of the most exciting and attractive things about forex trading. I go in to this point in easy-to-understand English via my forex ezine which you can subscribe to via http://www.fasttrackforex.com
That’s all for today.
Sam
