Forex Trading For Beginners - A Guide
As good a place as any for a FOREX beginner is to start with is gaining a good understanding of the lay of the Currency Trading land. As tempting as it is to jump into this massive money trading market, your wallet - and you - will be happier by tempering your enthusiasm and easing your way into this massive trading arena.
Not to say you won't set the Currency Trading world on fire and impress your friends and family with your first million made overnight...but....let's concentrate on learning a little first...then on making your first few PIPs.
Three areas that are valuable and helpful to learn about when starting out in FOREX trading are:
- FOREX History
- Major Foreign Exchange Market Participants
- Currency Pairs and Currency Codes
FOREX HISTORY
Learning about FOREX History and how it has shaped the trading industry we know and trade in today provides a good historical baseline and perspective.
There are several events that occurred of note in FOREX history, starting with the early Gold Standard days.
The conclusion of WWII brought the then-new Bretton Woods Agreement and System to the forefront, where it remained until the early part of the 1970's, when the gold standard finally ended.
That end ushered in floating foreign exchange rates which were adopted by the global financial currency trading community, and which form the base of today's foreign exchange trading markets and their respective exchange rates.
THE MAJOR FOREX PLAYERS
As a member of the FOREX trading for beginners "club" it's also a good idea to learn more about the major players in FOREX... called foreign exchange market participants, of which you are now, or will likely become one soon, once you start trading the FOREX.