Ever since Forex Trading has been made accessible for retail traders to trade online , it’s popularity has been growing at an ” Exponential Rate “.

This is due to one simple fact - And it is none other than the ” tremendous benefits ” forex trading has to offer.

Even traders who used to be active in other financial tools ( such as options or conventional stocks trading ) would not give this forex market a miss.

Well…when this is a lot of money to be made from any financial market and especially when the profits can be made ” Fast & Exponentially “……which trader would resist it right ?

In this post, I shall share some of the major benefits You would get to enjoy too by trading the forex market.

Here we go :

1)  You Can Profit 24 Hrs From The Forex Market

The forex market is open for trading 24 hours a day and 5 days each week.

Hence as a trader, You can choose to trade anytime You want and in any market conditions You want..

…Which also means You can trade early in the morning ” before work “….OR late at night ” after work “  - This kind of 24 hours market definitely makes it very convenient for any forex trader ( trade and make profits ) anytime they feel like it !  )

This is indeed a BIG PLUS point as compared to the stocks market - As it is NOT a 24 hours market and resulted in stocks trader needing to stay up ( late ) to trade most of the time……” sleepy…hmmmm” !

Because there is a ” closing period ” for  the stocks market, as such it is very prone to GAPPING which most stocks trader detest very much.

For a 24 hours market like forex, Gap is hardly seen. Perhaps only on a Monday morning when the banks are closed for the weekend.

Bottom line is that with a 24 hours market, You can generally find a trading period that suit Your trading style !

2) You ” SURE Can ” Buy Or Sell Your Positions Anytime

Forex trading is the largest financial market in the world and because it is a 24 hours market, the ” liquidity ” is excellent.

How does this benefits You then ?

Anytime You wish to Buy Or Sell a position, You can do so WITHOUT having to worry about Your orders not getting filled.

Which also equate to having the ” freedom ” of You entering and exiting the market anytime You wish.

3) Plenty Of Free Forex Resources Online For You

Be it news, forums filled with trading strategies, website filled with forex tips, video sites that offer Live trading videos or the many types of different trading platforms  - These resources are easily obtainable for FREE online indeed.

The main trick is to know what are the reliable ones You should learn from ! But with so many informative and reliable forex forums around providing helpful reviews, the tasks of finding good ones are indeed made simple with that.

4)  Low Trading Cost & NO Commissions Charged

In forex trading, there is no clearing house or exchange but simply an Over The Counter ( OTC ) market.

As such, the trading cost is very low, commissions and clearing fees are also being eliminated from the transaction costs.

5) You Can Trade ” Micro, Mini Or Standard “  Lots Size

Whether You have $50,000 or just $50 to start trading the forex market, You can do so without any restrictions.

Most of the brokers offer these lots size : MICRO, MINI Or STANDARD

Micro :  1 pip about $0.10

Mini :  1 pip about $1.00

Standard :  1 pip about $10

So it’s up to You to choose what kind of lot size You want to trade..

Of course, if You are just a beginner ( or struggling intermediate ), it would definitely be good to start ” small “  ( mini lots size ) to build up Your trading confidence as well as trading skills…

No point trying to risk huge capital ( hoping to get big returns ) but only to lose ALL Your funds to the market end of the day…..making You frustrated, Sad and Miserable…

6) The Power Of ” LEVERAGE ” In Forex Trading

One of the most powerful element that makes forex trading so Superior over other financial tools is the ” Huge Leverage ” it offers.

Using the standard leverage of 1 : 100 , You can simply invest only USD$1,000 and trade up to USD$100,000 of currency value.

It is this kind of HUGE Leverage that enable forex traders to get very good profits ( as well as Return On Investment - ROI ) in a relatively short time.

However, this is in fact a double edge sword - As any financial tool which You can use to make money fast, You can also LOSE money fast as well..

BUT….with proper ” Calculated Risk ” brought into consideration and trading with a GOOD RISK/REWARD ratio each time, You do not need to worry about the losing part generally…

Why so ?

Because with a GOOD Risk/Reward ratio, each time You lose, You lose less. But when You WIN, You are going to WIN Much More !

Having said that, some brokers even offer up to 400x leverage previously…( but recently the NFA has been restricting down to just 100x maximum -  But still….it is really good enough to make forex a very powerful tool  )

7) You Can Even Earn Interests For Some Positions

In Forex trading, You are basically trading currencies and it is always a Pair ( 2 different ones ).

As such, for some positions, You can even earn interests when You hold the position for a certain period.

These 7 benefits are some of the major ones retail traders ( like You and Me ) can enjoy - No Doubt!

They are definitely not all of course…..but good enough for anyone to see the power of  forex trading at this point ( having read through them )

Next, allow me to share a comparisons ( between stocks and futures ) to help You understand better :

Alright, so much for this article on the ” Tremendous Benefits ” You can enjoy with forex trading…

I hope You are getting a clearer picture now ( if You don’t previously ) and finally understand why so many people are jumping into this forex market ” HOPING To SUCCEED “…

With so many benefits this trading game can offer, many people sure cannot resist the temptation of ” wanting to try it out as well “….right ?

Due to this fact, people who are willing to learn the ” proper ways to trade the forex market ” would enjoy ( nice profits ) in the long run…

Whereas those that choose to take the ” Short Cut Method Or Get Rich Quick Mentality ” only suffer HUGE Disappointment end of the day……and of course losing all their trading capital…

Learn the ” right ways to trade ” from the very beginning can definitely save You a lot of unnecessary frustration and misery in the long run…

SO……if You’re  still a beginner ( or struggling to make money from forex )…..You know which is the ” wiser ” path to choose now…. right ? * smile *

Next article I am doing to write about is on :

” How Do YOU Make Money Trading The Forex Market ! “

What Is Forex All About ?

” Forex ” also can be known as ” Spot Forex “, ” FX “ or ” Retail Forex ” basically refer to the foreign exchange market.

It is literally the largest financial market in the world with a total ( average ) volume of about $7 Trillions flowing in and out every day…

If You don’t know how ” HUGE ” a market that has $7 trillions flowing around each day….let me give You an example below by comparing to the commonly known stocks market..

One of the largest stocks exchange is the New York Stock Exchange ( NYSE ) - No Doubt about this !

But it only has volume of  approximately $20 - $25 billions each day…

So if we make a comparison between the Forex & NYSE….Forex is anytime much bigger by at least 6 -7 times..

That is ” How GIGANTIC ” the forex market is….

As such, due to the large volume ( $7 trillions market ) - That explains why forex trading provide retail traders ( like You and me ) with so many benefits as compared to other financial tool…

( read on below as I share more about the benefits later )

Forex Trading ? OK….. But What Do You Actually Trade ?

To put it in the simplest way - You are actually trading ” Money “, ” Currency ” Or ” Cash “…

And You trade the currency through a brokerage company or dealer.

In forex trading, You trade currencies in pair like this :

- The American Dollars against the Japanese Yen ( USD/JPY )

OR…

- The British Pounds against the Swiss Franc  ( GBP/CHF )

Because You are not buying anything that is physical ( unlike investing in gold or properties ), it could be rather ” weird or confusing ” to most people who just started with forex trading..

If You are indeed feeling confused by this idea….then just think of the entire forex trading as investing in a country.

For example :

If You think that the British Pounds ( GBP ) is going to be WEAK against the Dollars ( USD )….

( Perhaps because Britain’s economy is not as good as the USA….)

….Then You would be Selling GBP against the USD  ( GBP/USD ) - Which also means Your bias is a Down-Trend for this pair…

Likewise, if You are Buying ( GBP ) against the USD, then Your bias is Up-Trend for this pair.

In fact, as long as You know :

- Which direction to trade

- when to enter and when to exit ( with profits )

… then You are a winner for the trade.

Where Do You Trade This So Called ” Exchange Of Currencies ” Then ?

Unlike the stocks market, the forex market has neither a central exchange or physical location.

The entire market is run electronically across all banks ( 24hrs a day ) which is why it is considered the ” Over The Counter ( OTC )  / Interbank ” kind of market…

Previously, if You do not have a Really Deep Pocket  or  Big Fat Bank Account…..then there is no way You can trade in the forex market…

It is only available to the big institutions, major banks or traders with high net worth.

Only until the late 1990s - With the invention of the internet, then it is possible for ” retail traders or little guys like us ” to trade through online brokers.

As long as You have a proven set of profitable trading strategies, a computer ( or laptop ) , a relatively fast internet connection and of course some funds to start a trading account…..You can also start trading forex ( from anywhere You want ) !

Which Are The Currencies Being Traded ?

Every currency literally represents a country. So for any country You can think of, there is probably a currency that belongs to this country and being traded.

However, there are some currencies that are being traded ” more often ” than the others..

Below is a list of the more popular currencies for You to learn more :

As You can probably see from the ” symbol” column above as well that each currency is always 3 letters in symbol name.

Such as :  JPY, GBP, USD….

Why are these symbols constructed this way ….You might be wondering..

Well…that’s because the first 2 letters actually identify the name of the country…

….and the 3rd letter is the name of the country’s currency.

Example :

( JP ) Japanese  (Y) YEN ….that’s why it is ” JPY “

( GB)  Great Britian (P) Pounds…..that’s why ” GBP “

What Timing Are Currencies Being Traded In The Market ?

Forex trading is a 24 hours market because at any time around the world, there would be a financial institution or bank that is in operation.

….At about 7am ( asian time ), Australia would start it’s operation..

….Then at about 3pm ( 8am GMT ), London would come in and start it’s day..

A few hours later at about 8pm ( asian time but USA just turn morning  ), USA would join in and start it’s operation too…

And this pattern continues throughout the week ( except on the weekend where most banks are closed. )

Here’s an illustration of the  Trading ” Time Zone ” for You to understand more :

Currencies Distribution In The FX Market ( which is more popular ? )

The US Dollars ( USD ) is the most commonly traded currency commanding market share of more than 84%.

( This means most of the currencies pair would have USD in it…such as EUR/USD, USD/CHF, GBP/USD, USD/CAD……etc )

2nd place would be the EURO ( EUR ) having a market share of about 36%..

Then follow by the Japanese Yen ( YEN ) holding a market share of approximately 16%

Here’s an illustration for You to learn more :

Alright, so much for this post on the essential Forex Basics for You guys…

Next topic I am sharing is on : ” What are the benefits of Forex Trading “…

Click on the link below to proceed to the next topic :

* What Are The Benefits Of Forex Trading ?

For any newbie starting out learning to trade forex…..he/she would definitely have to go through some intensive reading on this subject.

Reading and then understanding about forex trading is very essential if You want long term success in fact..

Just as the old saying goes :

” Knowledge Is Power ! “….

This is certainly ( very ) true..

The more You know about a certain subject….the more confidence You would feel…..and of course the better You would perform over time..

This belief is definitely applicable to forex trading as well…

And learning the forex basic the ” right ” way is very critical for later success…

Most newbies starting out exploring this forex trading business really have no clue how important forex basic is….

Instead…they would just channel all the effort into searching for the ” magic system or holy grail ” which could turn $100 into $100,000 in a few weeks…. ( by just pressing a button or activating that automated software )

This is really Not the way to kick start forex learning online…

Because these group of ignorant traders would ultimately lose the entire account by relying on the so called ” magic system ” - Without understanding how to trade forex market (properly) themselves…

“….I have personally committed this same ” terrible” mistake too myself and I am not ashamed to admit it though….”

I started out with the ” get rich quick ” mindset…

….and only want to look for holy-grail systems to help me grab profits from the market without me trading at all…

The end result is obviously natural - Losing all the capital I have in there….

It was when I decide to really get all my forex basic right…..then I start to see improvement both in my trading results as well as confidence level…

I am sure it is not new for You to hear this sentence :

” Good & Strong Foundation Is The Key To Everything ! “…

Hence….there’s no way anyone would succeed in the long run without getting the forex basic right..

Why is learning to trade forex the right way so important then.. ?

Just imagine these scenerios :

1) How can anyone trade the forex market without knowing how to identify simple resistance and support zone ?

Or…

2) How can any trader really trade the market profitably without even knowing how to identify a up-trend or down-trend ?

Of course they can still trade…

But that would be based on wild guessing….feelings….emotions…..

Which sadly……would only lead to undesirable trading outcomes & losing all the starting capital most of the time…

On the other hand……there are tonnes of different forex information and gazillion topics on forex basic online course…

I would not expect anyone ( including ) Yourself to go find and then read each of them definitely..

That’s not productive at all…and You would only end up in extreme information overload….( ARGHh! )

I was once suffering that way….( no joke )…..and I do not want anyone to go through the same ” torturous information overload ” too…

Thus…I have decided to start this section on Forex Basic Online Course..

Here …You guys would get to learn all the basic You need in order to really understand how to trade the forex market profitably…..

What would this Forex Basic Online Course be teaching ?

All the essential elements to prepare You guys for successful trading in fact..

Such as :

” what is forex trading ”

” what are pips and spreads ”

” how to choose a forex broker ”

” Various chart reading ”

” basic technical analysis ”

” reading high probability patterns formation ”

and even…

” simple steps to You can use to set up Your very own trading strategy ”

…and much more..

Reading can be torturing for some….I know !

So I will try my best to summarize everything in a ” short and sweet ” manner just to let anyone reading it understand better….and with minimum effort.. * smile *

However….just like while trying to learn anything new in life…

By reading up the forex basic but if You did not put into practice….it serves no purpose actually…

Reading and understanding can only do ” that ” much…

Nothing beats firing up the forex chart on any currency pair You want ( eg. Eur/Usd ) and really test out what You have read….

It can be drawing simple trendlines….

It can be identifying simple support and resistance..

It can be spotting that double top or double bottom patterns formation…

Etc….

The more You train Your naked eyes and unpolished mind to look at real chart…

The better You would become as the days gone by…..proven !

Don’t believe?  Try it out Yourself ! * smile *

Alright….so much for this introduction on our Forex Basic Online Course section…

Enjoy reading ….

Do check back often as I will be adding new and fresh contents on a regular basis to share..

Happy trading !