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  • Future Success

    Copyright Future Success & Daniel Dwase All Rights Reserved www.future-success.org

    Forex for Beginners:

    How to Make Money Trading Forex

  • Future Success

    Copyright Future Success & Daniel Dwase All Rights Reserved www.future-success.org

    General Disclaimer

    Any and all information provided within this book is for general information purposes

    only and are only the opinions of its author. They are not recommendations to buy or

    sell any types of investments. We are not Financial Advisors. We do not warrant the

    accuracy, timeliness or suitability of any information provided nor should any of the

    provided information be deemed to constitute financial advice or recommendations by

    us. It is also not meant to be investment advice or recommendations to establish market

    positions. We recommend that independent professional advice is obtained before you

    make any investment or trading decisions.

    Limit of Liability / Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult a professional where appropriate. Neither the publisher nor the author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages. Risk Disclosure: The information in this book is for educational purpose only. Past

    performances do not guarantee future results. FOREX Trading involves substantial risk

    and there is always the potential for loss. Your trading results may vary. Trade only

    capital you can afford to lose. We assume no liability for losses incurred using the

    information in this book.

    Copyright Future Success & Daniel Dwase

    All rights reserved. No part of this work may be reproduced in any material form

    (including photocopying or storing in any medium by electronic means and whether or

    not transiently or incidentally to some other use of this publication) without the written

    permission of the copyright holder except in accordance with the provisions of the

    Copyright Designs and Patent Act 1988. Applications for the copyright holders written

    permission to reproduce any part of this publication should be addressed to the

    publishers.

  • Future Success

    Copyright Future Success & Daniel Dwase All Rights Reserved www.future-success.org

    How Do You Make Money Trading Forex?

    Forex trading is the buying and selling of international currencies. Traditionally, participation in the Forex market was confined to major banking and trading institutions. But in recent years, technological developments have opened up this once exclusive arena to smaller companies and even individuals by allowing them to trade currencies online. All you need to start trading Forex is a computer and an Internet connection. You can do it from the comfort of your home, in your spare time without leaving your day job. And you don't need a large sum of money to start, you can trade initially with a minimal sum, or better off, you can start practicing with a demo account without the need to deposit any money. Once you consider to start Forex trading, one of the first things you need to do is choose a broker, choosing a reliable broker is the single most critical factor to Forex success. There are dozens of online brokers out there but your best bet is to go with one of the leaders. Heres an online broker that is very reputable and is most suitable for beginners and pros alike XM.com - The best broker for traders from all over the world (If the link doesn't work, copy and paste the following URL into a browser: http://www.future-success.org/xm Now I would strongly encourage you to go and visit these broker's sites right now even if you are not yet decided whether you want to go into Forex trading. Why? Because they provide tons of free educational materials, videos and best of all a demo account that allows you to practice Forex trading for free without the need to deposit any money. It has several different account levels that make it easy for anyone to open an account. XM is an excellent broker suitable for beginners and pros alike. Simply go to the brokers website, register for a free demo account and start "trading" - by actually practicing and experiencing it firsthand you'll be able to decide whether Forex trading is for you. In any case, before starting to trade for real, it is advisable that you practice with a demo account. Once you build some skill and feel more comfortable with the system you can start trading gradually with real money.

    http://www.future-success.org/xmhttp://www.future-success.org/xm

  • Future Success

    Copyright Future Success & Daniel Dwase All Rights Reserved www.future-success.org

    The Basics of Forex Trading

    The worlds currency rates are not fixed. They follow a floating exchange rate and are always traded in pairs Euro/Dollar, Dollar/Yen, etc. Most international transactions are exchanges of the worlds major currencies. When it comes to Forex trading, there are a number of major currency pairs: Euro v. US dollar, US dollar v. Japanese yen, British pound v. US dollar, and US dollar v. Swiss franc. These currency pairs are considered major in comparison to the other currency pairs because of their trading volume. In the Forex market, these relationships are shortened: EUR/USD, USD/JPY, GBP/USD, and USD/CHF. They may also be listed as follows (without the slash): EURUSD, USDJPY, GBPUSD, and USDCHF. Below is a chart of 4 major currency pairs clearly illustrating their relationship to each

    other.

    It is also important to remember that there are no dividends paid on currencies. If you are a trader in the Forex market, you look to see whether one currencys value will appreciate against another currency. When this is the case, you exchange the latter for the first. Ideally, you will be able to exchange the first currency for the other at a later time and collect a profit from the trade. Forex transactions are typically conducted by professionals at major banks and brokerage firms. Forex trading has long been an important feature of the international market. At all hours of the day, currencies are being traded by brokers around the

    world.

    In fact, the Forex market operates virtually twenty-four hours a day and five days a week with traders at international banking institutions working a number of separate shifts.

    EUR/USD Daily Chart

  • Future Success

    Copyright Future Success & Daniel Dwase All Rights Reserved www.future-success.org

    The Forex market is different from the normal stock market in the fact that price shifts are much smoother and do not result in significant gaps. Each day the Forex market turns over trillions of dollars, allowing traders to enter and exit certain position very easily. As you can see, the Forex market is a dynamic and continuous system that basically never sleeps. To be sure, even on September 11 in 2001 it was still possible to obtain currency quotes. The foreign exchange market, which is usually known as Forex or FX is the largest

    financial market in the world. Compared to the measly $22.4 billion a day volume of the

    New York Stock Exchange, the foreign exchange market looks absolutely gigantic with

    its $5 TRILLION a day trade volume.

    Check out the graph of the average daily trading volume for the Forex market, New York

    Stock Exchange, Tokyo Stock Exchange, and London Stock Exchange:

    Trades are brokered between major banking groups and circulate around the globe, from America to Australia, to Asia, to Europe, and back to the U.S. For a long time, financial prerequisites and hefty minimum transaction amounts put the Forex market out of reach of small traders. Consequently, at one time major banks and financial institutions were the only parties that could benefit from participation in the Forex markets fluidness and strong exchange rates. Today is a different story. Forex market dealers can divide large units within the market, allowing smaller corporations and even individuals the ability to trade these smaller units. Even though it is the oldest financial market in the world, the Forex market has evolved a great deal in a short amount of time.

  • Future Success

    Copyright Future Success & Daniel Dwase All Rights Reserved www.future-success.org

    High-speed internet connections and sophisticated online Forex trading platforms has definitely made it easier for individual traders to get involved in Forex trading and possibly be very successful at it.

    Advantages of Forex Trading

    Around the clock market: A trader can trade anytime that they think market conditions are favourable. Forex offers a 24-hour market. This is particularly convenient for those who wish to trade Forex on a part-time basis. You could easily find markets to trade that will not conflict with your work schedule. There is basically no schedule that the Forex markets trading hours cant accommodate. Easy in-Easy out: A trader can enter or exit the market almost totally at will; no other market offers as much liquidity. There are very few execution barriers and no limits are plac

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