What the FOREX IS, and How to Take Part in the
World's Largest, Most Liquid Trading Market
"If you think what you
do is exciting, you ain't seen nothing yet. I'm an FX Trader".
Those were the words I heard over five 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
course (seriously), "The World's Most Lucrati.ve Hom.e_based Busin_ess"
.
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.
=============
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 you 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.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
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.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Okay, okay ... let me STOP myself before I get too deep into Currency Pair
education (I'll cover that with you in Later)
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 person 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 else?"
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
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 of 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:
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
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 mill.ion doll_ars
out of the FOREX market every day and the FOREX would still have more
money left than the New York Stock would have daily!
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 Dollars.
So, before you read the next part below, 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 their investments,imagine what the other 95% is for --
bingo, for speculation and profit.
Discussion Boardwhich is pretty empty right now but we hope to make it the premier
place on the net to discuss affiliate programs ,Please do us a favor and
check it out
, Thanks.
Why FOREX trading is quickly becoming one
of the investing world's hottest, most
rewarding opportunities. And, why it's our
chosen 'Ideal Business.'
As ambitious, hungry,
time freedom-driven entrepreneurs
ourselves, before we were introduced to the concept of
Trading-For-a-Living, we had the pleasure of reviewing and
seeing IN ACTION hundreds of home busine_ss plans, profit-making ideas, and ways to earn a decent income outside of a
J-O-B.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ SIDENOTE: while we realize the majority of you reading this
know J-O-B stands for "Just Over Broke" and that you'll
never become wealthy working one forever; and while we
understand you're already determined to live your dreams and
reach a level of REAL financial independence and Freedom, we
still want you to know that it's NOT just all about money --it's about quality of life. It's about time freedom and
self-reliance. It's about families. It's about being able to
live a life where you can achieve your recurring daydreams (we
live out our dreams daily on the beaches of Hawaii when we're
not engaged in trading)
We feel FOREX Trading allows you to live the life you've
always wanted more so than any other income vehicle. It ,in
our opinion, is indeed "The World's Most Lucrative Hom.e_based
Busine_ss"
Read on to learn more ...
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
(continued from above the SIDENOTE)
But, more than just analyzing ways to make money, we've been
a part of quite a few (i.e., Direct Sales, delivery business,
Real Estate, marketing consulting, risky investments, etc.).
And from meeting with, interviewing, hearing about others in
business, studying industries with intensity and/or reading
about all the different "gurus of the moment", we have come
to find a few SIMPLE truths:
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Business Truth #1:
Quite often people who have money don't
have the time to enjoy it, and those that
have the time don't have the money.!
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Well, here's some compelling news for you ...
You don't have to sacrifice a LIFE to earn an incredibly
above-average income!
This isn't a pipe dream. It's purely realistic and
completely optimistic to say that, yes, if you FOCUS on
FOREX trading for several months, you CAN bring your life
into balance.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Business Truth #2:
Before money is earned...something, somewhere,
somehow has to be SOLD. And, if it's not a repeat
type (consumable) product or service, as soon as
you stop whipping up the sales force your incom.e
comes to a screeching halt!
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Listen: "money" is a medium of exchange, nothing more and
nothing less. There's no magic way to acquire it. The way to
build wealth is to exchange a value-oriented product or
service for it.
But what if, rather than hiring sales reps (or being one
yourself), a full-time accountant, an attorney,
administrative staff, customer service / human resource
personnel (in other words, "employees"), you could work by
yourself and have access to multiple thousands of
"customers" (no need to advertise to them either) who are
ready and able to BUY from you (or SELL to you) at the drop
of a hat?
And, wouldn't it be incredibly cool if your business could
just laugh-off such traditional hindrances as competition,
collection problems, changing fads, bad publicity, political
or social events, etc?
Yes, all that and, oops, we almost forgot -- it gets even
better...
Trade from anywhere. If you like to travel, this is a dream
business. Take your laptop with you and you can trade the
FOREX and make money anywhere in the world where you have an
internet connection. You can be on the white-sand beaches of
Hawaii, or at your kitchen table (we work extensively at both
spots). You have total freedom of location.
Can you now see why we call this "The World's Most Lucrative
Hom.e_based Busine_ss?"
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Business Truth #3:
A classic dilemma: for most, you can't get a job
(or start a business) without experience
(expertise) and you can't get experience
(expertise) without a job (or being involved in
business)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
When attempting to make more profit than losses on the
fluctuation of exchange rates between major currencies
(i.e., Trading the FOREX), nobody is going to ask you for a
diploma, a formal license or verify the amount of hours
you've spent studying the Foreign exchange market and
banking industry.
Nope, it just isn't gonna happen!
All the training you'll need to get going smoothly is
included IN and WITH our Rapid Forex Training Courses (and,
of course, the rest of this eCourse series will
give you more solid info. than even most books do).
----> Now that we've talked some about how FOREX Trading
Obliterates, like a nuclear explosion, the 3 main
disadvantageous business TRUTHS above .....
===========================================
Let's discuss the many benefits and advantages
of FOREX Trading over Stocks & Commodities
===========================================
Here's the HIGHLIGHTS on WHY FOREX is becoming the
go-to market for private and institutional traders alike:
The Main Benefits of Trading the FX Spot Market:
(we'll get into some of the DETAILS after this)
- Never a 'Bear' Market!
- No Separate commissions!
- Low to Zero Transaction Costs / Narrow Dealer Spreads!
- A 24-hour Market with Superior Market Liquidity!
- It has up to 200:1 Leverage for Margin Trading!
- Streaming Executable Prices!
- Price Movements Are Highly Predictable!
- FOREX Trading is Economical and Start-up Costs are Low!
============================
Before we get into the DETAILS on the BENEFITS listed above,
as a potential RapidForex.com student, trader, and all-around well-educated investor, it is important to know the
differences between cash FOREX (SPOT FX) and currency
futures.
In currency futures, the contract size is predetermined.
With FOREX (SPOT FX), you have more freedom with trade sizes.
You can trade with minimal portions of you account up to as
many lots of $100,000 USD as you wish. The futures market
closes at the end of the business day (similar to the stock
market). If important data is released overseas while the U.S.
futures markets is closed, the next day's opening might sustain
large gaps with potential for large losses if the direction of
the move is against your position.
The Spot FOREX market runs continuously on a 24-hour basis
from 7:00 am New Zealand time Monday morning to 5:00 pm New
York Time Friday evening. Dealers in every major FX trading
center (Sydney, Tokyo, Hong Kong/Singapore, London, Geneva
and New York/Toronto) ensure a smooth transition as
liquidity migrates from one time zone to the next.
Furthermore, currency futures trade in non-USD denominated
currency amounts only whereas in spot FOREX, an investor can
trade either in currency denominations, or in the more
conventionally quoted USD amounts. The currency futures pit,
even during Regular IMM (International Money Market) hours
suffers from sporadic lulls in liquidity and constant price
gaps. The spot FOREX market offers constant liquidity and
market depth much more consistently than Futures. With IMM
futures one is limited in the currency pairs he can trade -Most currency futures are traded only versus the USD - With
spot FOREX, you may trade foreign currencies vs. USD or vs.
each other on a 'cross' basis as well - ex: EUR/JPY,
GBP/JPY, CHF/JPY, EUR/GBP and AUD/NZD .
============================
More and more savvy investor and entrepreneurs are shunning
traditional financial markets, like stocks, bonds &
commodities and building their fortunes in the foreign
exchange (FOREX) marketplace.
Here are 7 important reasons why:
1): FOREX is the largest financial market in the world.
With a daily trading volume of over $1.5 trillion, the spot
FOREX market can absorb trading sizes that dwarf the
capacity of any other market. In fact, when compared with
the $50 billion daily market for equities or the $30 billion
futures market, it becomes quickly apparent this gives you,
and millions of other FOREX traders, almost infinite trading
liquidity and flexibility.
2): FOREX is a TRUE 24-hour market.
The FOREX Market never sleeps. Trading positions can be
entered and exited at any moment - around the globe, around
the clock, six days a week. There is no waiting for an
opening bell as in the case of trading stocks. It is a 24-hour, continuous electronic (ONLINE) currency exchange that
never closes. This is very desirable for you if you want to
trade on a part-time basis, because you can choose when you
want to trade: morning, noon or night.
3): There is never a Bear Market in FOREX.
You can have access to a seamless, mutually-inclusive (two-way) exchange of currencies. Meaning, because currencies
trade in "pairs" (for example, US dollar vs. yen or US
dollar vs. Swiss franc), one side of every currency pair(for example, USD/JPY - JPY = YEN) is constantly moving in
relation to the other. Thus, when you buy a particular
currency, you are actually simultaneously selling the other
currency in that particular pair. As the market moves, one
of the currencies will increase in value versus the other.
Of course, it is up to you to choose the correct currency to
be long or short. Since currency trading always involves
buying one currency and selling another, there is no
structural bias to the market. This means you have equal
potential to profit in both a rising or falling market.
4): High Leverage - up to 200:1 Leverage.
You are permitted to trade foreign currencies on a highly
leveraged basis - up to 200 times your investment with some
brokers. This is primarily attributed to the higher levels
of liquidity within the currency markets. Standard 100,000-unit currency lots can be traded with as little as 1%
margin, or $1,000. Mini FX accounts are permitted to trade
with just 0.5% margin -- in other words, just $50 allows you
to control a 10,000-unit currency position. Futures traders,
who are accustomed to margin requirements generally equal to
5%-8% of the contract value, will immediately recognize that
the FOREX market provides much greater leverage, and for
stock traders, who must post at least 50% margin, there's no
comparison. If you're looking for an efficient use of
trading capital, this is it!
5): Price Movements Are Highly Predictable.
Although currency prices in the FX market may be volatile,
they generally repeat themselves in relatively predictable
cycles, creating trends. The strong trends that foreign
currencies develop are a significant advantage for traders
who use the "technical" methods and strategies we teach at
RapidForex.com
Unlike stocks, currencies rarely spend much time in tight
trading ranges and have the tendency to develop strong
trends. Over 80% of volume is speculative in nature and, as
a result, the market frequently overshoots and then corrects
itself. As a technically -trained trader, you can easily
identify new trends and breakouts, which provide for
multiple opportunities to enter and exit positions.
6:) Commission-free Trading and Low Transaction Cost
When you trade FOREX, through one of our recommended brokers
(this info is in our private resources section), you'll do
it totally commission-free! These brokers don't charge
commissions to trade or to maintain an account, and that
goes for all clients trading the FOREX through them,
regardless of your account balance or trading volume. Even
Mini FX traders can buy and sell currencies online,
commission-free.
This is worth repeating: No FX commissions!
What about trading fees? There are none of the usual fees to
which futures and equity traders are accustomed -- no
exchange or clearing fees, no N_F_A or S_E_C fees. Because
currencies trade over-the-counter (OTC), via a global
electronic network -- in FOREX, what you see is what you
get, allowing you to make quick decisions on your trades
without having to worry or account for fees that may affect
your profit/loss or slippage.
In the equities markets, you must pay both a commission and
exchange fees. The over-the-counter structure of the FX
market eliminates exchange and clearing fees, which in turn
lowers transaction costs.
So, if FOREX brokers don't charge commissions, how do they
make money? Like all traded financial products, over-the-counter currency trading involves a bid/ask spread, which
represents the prices at which your counterparty is willing
to trade. Because the currency market offers round-the-clock
liquidity, you receive tight, competitive spreads both
intra-day and night. Stock traders can be more vulnerable to
liquidity risk and typically receive wider trading spreads,
especially during after-hours trading.
7): Instantaneous Order Execution and Market Transparency.
Market transparency is highly desired in any trading
environment. The greater the market transparency, the more
efficient the market becomes. Unlike other markets where
transparency is compromised (like in the Enron scandal),
FOREX markets are highly transparent (i.e., analyzing
countries, and having access to real-time research / news,
is easier than for publicly held companies).
Because of this transparency, as an FX trader, you will be
able to exercise risk management strategies in accordance to
the fundamental and technical indicators we teach at
RapidForex.com
The FX market offers the highest level of market
transparency out of all the financial markets. Because of
this, order execution and fill confirmation usually occur in
just 1-2 seconds. Markets that do not offer executable
prices and force traders to absorb slippage obviously
compromise the trader's profit potential considerably.
In the forex world, order execution is all-electronic and
because you'll be trading via an Internet-based platform,
instantaneous execution is routine. There are no physical
exchanges, no traditional open-outcry pits, no floor brokers,
and consequently, no delays.
=================================
So, by now, if you haven't caught our FOREX fever -- our
belief and interest in this market of unlimited profit-making opportunities -- well ... we're just not too sure
what else we can do with you :-)
FOREX trading truly is the "World's Most Lucrative Home
ba.sed Business" and we invite you to stay-tuned for next lesson on *Currency Pairs* - how to read them,
calculate profits, recommended pairs to trade, etc.
