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LESSON #1:
What Is FOREX and How to Take Part in
the World's Largest, Most Liquid Trading Market
"If you think what
you do is great, you ain't seen nothing yet. I'm an FX Trader".
Those were the words
I heard over three years ago, and since then, regardless of how
confrontational, competitive, or in- your-face they may have seemed at
the time, I'm glad I heard them. I was just introduced to what we will
affectionately call, throughout this mini-course (seriously), "The
World's Most Powerful Home-based Business"
Even though you,
and I, have had the opportunity to take part in trading foreign
currencies for profit (in the same way banks and large corporations do)
since 1998, it is just now becoming the cool, hip, new "thing" to talk
about at parties, business events, and other social gatherings. Even
though it HAS been somewhat of a loosely guarded secret, more and more
investors are turning to the all-electronic world of FOREX trading for
income and profit because of its numerous benefits & advantages over
traditional trading vehicles, like stocks, bonds and commodities.
But, still,
whenever something SEEMS new or is just becoming a part of social
conversation, news articles, and water cooler gossip, misconceptions
have to be overcome, the mind has to be open and the slate has to be
clear for starting out fresh with the CORRECT information. So, in this
first Lesson, it is our attempt to give you some solid, but not
over-detailed, information on just what the heck "FX" (FOREX) means,
what it is, and why it exists. Plus, we wouldn't want you to be the one
giving the blank stare, at the parties, when someone brings it up :-)
If you'd like to
make $200 to $3,000 for as little as ten minutes of work -- work that
involves minimal risk, but plenty of upside potential -- then this
ongoing email mini- course if for you. As a friend of mine said,
“Trading FOREX is like picking money up off the floor. NOT trading FOREX
is like leaving it there for someone else to pick up." Others in the
industry have also said, “It’s like having an ATM machine on your own
computer.”
In this 20-part
e-Course series, we will show you what they mean.
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Here's the
all-steak, no-sizzle explanation (one we feel you'll appreciate) of what
FOREX is and how traders, like us, profit from it:
The Foreign Exchange Market, also referred to the
"FOREX" or "FX" market, is the spot (cash) market for currency.
But, don't mistake
what we're doing as trading the futures market, where you buy a contract
to purchase a particular currency at a future price in time. What we
do is much less risky than trading currencies on the futures market,
much more profitable, and a lot easier, than trading stocks.
So, you're probably
wondering where it's at ... or ... how to access the FX market? The
answer is: FX Trading is not bound to any one trading floor and is not
centralized on an exchange, as with the stock and futures markets. The
FX market is considered an Over-the-Counter (OTC) or 'Interbank' market,
due to the fact that the entire market is run electronically, within a
network of banks, continuously over a 24-hour period.
Yes, if that's the
first time you've heard about an all- electronic market, we know this
may sound somewhat intriguing to you. And, it should be, because it
certainly is.
Here's what you are
actually trading when you participate in the Foreign Exchange (FOREX)
market: Essentially, like the large banks who use the FX market to
protect themselves from the fluctuating exchange rate of different
currencies, as an investor, what we're doing is simultaneously
exchanging one countries currency for another. So, in actuality, we're
electronically trading a currency-pair and the price that is quoted to
us is the exchange rate between the two currencies.
If you just said,
"Huh?" ...no worries, we've got ya covered with an explanation. In
other words, simply the quoted price is how many of the one currency is
worth 1 of the other currency.
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Example:
EUR/USD last trade
1.2850 - One Euro is worth $1.2850 US dollars.
The first currency
(in this example, the EURO) is referred to as the base currency and the
second (/USD) as the counter or quote currency.
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Okay, okay ... let
me STOP myself before I get too deep into Currency Pair education (we'll
cover that with you in Lesson #3)
Yes, this is a lot
to share with you about this relatively new, exciting market of
unlimited profit possibilities -- a market that has so many more
advantages over other investments, and even over other businesses, that
it will blow your socks off. And, being the curious, ambitious guy that
you are, I know you'd like to dive in. So, stay tuned for tomorrow's
email where we'll tell you why FOREX Trading is the ideal business and
what its benefits are over other investing vehicles.
But ..... WAIT !!!
I'll at least give you something to chew on overnight.
We get a lot of
questions about FOREX - from folks who've never heard of it to advanced,
highly-skilled traders.
The one question
that keeps popping-up from the former group of people is this: "If
people, like you, are making so much money by trading the FOREX, why
would you share this information with anyone?" Here's the answer...
The FOREX has a
DAILY trading volume of around $1.5 trillion dollars - 30 times larger
than the combined volume of all U.S. equity markets. This means that
1,498,574 skilled traders could each take 1 million dollars out of the
FOREX market every day and the FOREX would still have more money left
than the New York Stock exchange every day!
Wow !
Yes, wow indeed.
The FOREX plays a vital role in the world economy and there will always
be a tremendous need for the FOREX. International trade increases as
technology and communication increases. As long as there is
international trade, there will be a FOREX market. The FX market has to
exist so a country like Japan can sell products in the United States and
be able to receive Japanese Yen in exchange for US Dollar.
So, before tomorrow
arrives, just keep this in mind: There's plenty of money for plenty of
traders to use the same trading techniques / tactics and profit
immensely. And, with only 5% of the daily turnover of volume coming from
banks, government and large corporations who need to hedge, imagine what
the other 95% is for -- bingo, for speculation and profit.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ SIDENOTE: a
lot of courses will spend several pages introducing the FOREX by giving
a historical perspective. In our opinion, for a trader, this is a waste
of time. Yes, it could be interesting to learn about the details on
Who, What, When, Where and Why but, just know that historical knowledge
will not help you to become a FOREX Trader. However, we will leave you
with the QUICK Info below:
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