All about forex. The truth about forex. What not to pay attention to

To put it simply, Forex is an "exchanger" in which people transfer one currency to another.
If we use a more official interpretation, then:

Forex - This is a market for the interbank volume of currency at a free price.

Briefly, the market can be described as follows: the process of trading in this market occurs in the same way as in ordinary markets: based on supply and demand. But in this case, the commodity is the currency.

The control and regulation of this market in the Russian Federation is carried out by the Central Bank, although there is no clear regulation.

Differences from other markets

Most often, the Forex currency market is compared with. Note that the stock market is considered more stable than the currency market. Stocks, bonds and other securities are traded on this market.

For a more accurate comparison, consider the features of the stock markets too:

• Certain places are used for trading (stock exchanges);
• Different exchanges have different quotes for securities;
• The number of bidders is limited;
• Before you buy securities, you need to find both a buyer and a seller for them;
• It is impossible to sell shares that are actually not there, for this they borrow from a broker;
• Profit will be received only by certain groups of investors;
• Stock exchanges operate for a certain period of time.

In Forex, the situation is diametrically opposite:

• There is no binding to a specific place;
• The market is single, which means that the currency quotes are the same;
• Any number of people can participate in the auction;
• It is possible to carry out operations that exceed the deposit;
• Profit in any amount can be received by any participant;
• The market is open around the clock, except Saturday and Sunday.

The most important difference can be called the fact that all transactions are carried out remotely, via the Internet. Traders can be located in different countries, moreover, on different continents.

Circle of participants

The foreign exchange market implies the presence of different participants. Each of them has the same goal - to sell more expensive, buy cheaper. The goal is the same, but each of them has its own status and performs its functions.

So, the largest players are the central banking organizations of different states. They not only influence exchange rates, but also buy and sell foreign currency on the domestic market.

In addition, they are responsible for the refinancing rate. Because of this, exchange rates experience certain fluctuations.

Commercial banking organizations are in second place. Through them passes the largest number of exchange transactions.

Importers and exporters - the next category of participants. They carry out the sale of foreign currency for the national one, and also make the purchase of the currency in the country of circulation of which they have partners.

if() - make a large turnover of funds, which affects the rates of different currencies. Their job is to make as much profit as possible.

Another member -brokerage companies. Thanks to them, transactions are carried out all over the globe. Their clients are trading through special programs.

The next step is occupied investors - individuals . Their profit is formed by the difference that has developed between the buying and selling rates of the currency. It doesn't matter in what order these operations are performed.

Principle of operation

In fact, he is easy.

Example. To purchase the EUR/USD currency pair, a trader needs to pay $1.2326. After increasing the price, he will be able to sell at a higher price. And the difference from the deal will remain with him. This is the whole principle of work.

What is a currency pair? the reader will ask, and he will be right.

currency pair - these are 2 currencies, the first of which is the base, and the second is the quote. They are objects for buying and selling transactions.

The EUR/USD currency combination shows how many dollars the euro is worth.

There are several more typical currency pairs: USD/JPY (Japanese yen), GBP (UK pound/USD). These are the most demanded and liquid instruments on the market.

You can also mention "exotic" currency pairs, for example: USD / RUB (liquidity is low, popularity is therefore low).

There are also cross-currency pairs, without the dollar in the composition. For example: EUR/GBP (Euro/GBP Pound).

What is Forex market analysis

Before you start making transactions, you should conduct a market analysis. Each trader has his own strategy here, we will consider the main indicators for such an analysis.

Three types of analysis are known:

• Intuitive;
• Technical;
• Fundamental.

If a trader wants to become successful and earn a stable income, it is simply necessary to analyze the state of the market. In addition, all three types of analysis are equally important, they should not be neglected. Let's look at them in more detail and start with the technical.

Technical analysis

Divided by manual and automated.

With manual analysis, technical indicators are analyzed and a decision is made to buy or sell a currency pair.

With automated analysis, the psychological factor, which has harmed a considerable number of traders, is completely excluded.

When using automated analysis, the system examines previous price fluctuations to determine future price fluctuations.

Fundamental analysis

With this type, several different factors are analyzed: from the unemployment rate to the economic situation in the country that is associated with the currency pair.

Therefore, those who prefer this type of analysis should always be aware of current economic news.

Intuitive Analysis

As practice shows, most often this type of analysis is used by beginners. It turns out that they plan to become rich only through luck. But this path is a dead end.

Some traders never come to this conclusion and are simply disappointed in Forex. Opening trades at random is not the best strategy.

Forex trading and its rules

Let's talk about the rules, following which it is quite possible to become a successful trader. Many people who have already reached a certain level of success recommend sticking to them, since these recommendations can be called universal.

1. Learn the basics. For many, this may seem banal, but more often than not, beginners simply ignore this rule. They immediately trade using real money, and eventually lose everything.
2. If you want to get rich quickly by investing a minimum of funds, Forex is not for you. Even professionals can fail and lose money due to a few wrong bets. And a beginner, “fortune-telling on the coffee grounds”, will be very quickly disappointed. Beginning traders are attracted by beautiful commercials, they are sure that without knowledge you can become a rich person.
3. Playing for the last money is a bad idea. Don't borrow money to test another brilliant strategy. If you lose, you will lose not only your funds, but also other people's. And the debt will still have to be repaid.
4. Monitor the situation in the economy. This does not mean that you need to watch the news around the clock. If the broker is experienced, he simply catches the slightest changes.
5. Leave the game on time. First of all, this recommendation applies to beginners. You always need to know the measure and resist the temptation, if you do not want to lose everything to the penny.
6. First, practice on a demo account. But do not forget that a virtual and real account are different things.
7. Be on the lookout for fake experts. Of course, the experience of colleagues with great experience is invaluable. But there are also such “experts” who, having made 2-3 transactions (maybe successful), begin to think that they are gurus. In fact, they just want to be bought from them for various manuals and training materials. You should not pay attention to such people.
8. Learn to conduct your own market analysis. You can listen to the advice of others, but you need to learn to make your own decisions. Learn to analyze the market, this is important!
9. Choose your path. Beginners often fail for two reasons: lack of experience and blindly following the advice of others. You need to develop your own path, gradually ceasing to follow the crowd.
10. Develop and hone your strategy. This does not mean that you need to invent something unusual. If there is a strategy that has justified itself, it can simply be refined.

These rules can be called elementary to some extent. But they really help novice traders find their way. Of course, everyone has their own approach to business, but it’s still worth paying attention to these recommendations.

And now we will focus on such a concept as a demo account. Find out what it is and why it is needed.

Demo Account

This is a "probe" of a real account. It is given so that a novice trader does not risk his money, but at the same time becomes a full-fledged market participant.

By opening a demo account, you can decide on a strategy, analyze all the tools that are available for trading.

The downside of working with demo accounts is that sooner or later a trader will begin to lose his sense of risk. And the earnings received at the expense of virtual money have very little practical value.

There are also many myths associated with the demo account. For example, using it you can easily learn how to earn money. This is far from reality. This account is intended for the beginner to see and understand what the technical side of trading is all about.

You can trade on a demo account until you achieve real and constant profit (for 1 to 3 months).

How much can you earn

Several factors influence the amount of future earnings. The desire to make big profits is not a priority, and working on Forex has nothing to do with working for a manager. It is unlikely that anyone will be able to name specific figures for a trader's earnings.

1. The presence of a certain set of personal qualities, as well as a psychological state. If a person does not know how to control his emotions, he will not see big earnings. He will earn for a short time, and then he will still incur losses. If he knows how to control himself, calculate every step - success will come, and with it good earnings.
2. Deposit amount. Traders usually measure the amount of income as a percentage of their deposit. A good indicator is about 15% per month. Disappointed? But this is an objective figure. If trading is carried out carefully and deliberately, the percentage can increase.
3. following a specific strategy. The more thoughtful the strategy, the more clearly it is followed, the better the result is obtained.
4. Following the rules of money management. If a trader is experienced, he understands that they must be observed. There are two sides here: if you enter the market with the entire amount of the deposit, as many beginners do, you can earn a lot, or you can suffer a complete collapse. In this situation, this is not work, but a game of roulette. And if the rules are followed, the profit will not be huge, but the risks will be less.
5. Market condition. The market can be sleepy, almost dead. This usually happens before serious news or after they come out. On such days, it’s better not to open deals, you won’t be able to earn a lot. Not always the profit depends only on the trader.

So, let's summarize a little. If a trader carefully analyzes the market, keeps his emotions under control, and also follows a number of the rules already mentioned, the profit will be up to 30%. It will increase over time. A jump to 100 percent or more is more luck than a pattern.

Forex Brokers

Why do you need a Forex broker? They provide a large number of useful services to the trader: they can provide a cash loan, provide clients with information materials, and so on.

Many companies train their clients, help withdraw funds, and provide consulting services.

In our table we present information about several such companies.

Positive and negative aspects of earning on Forex

Pros:

• Nobody limits the amount that can be earned;
• Before starting work, no one will be interested in whether you have a diploma and whether you speak three foreign languages;
• The ability to work from anywhere in the world where there is Internet;
• The schedule allows you to deal with personal affairs, successfully combining them with work;
• The boss is absent, and colleagues do not ask stupid questions.

Minuses:

• There is always the possibility of losing money;
• There is no way to drop everything and leave: there will be no earnings;
• It is difficult to explain to others what you do. Many people think that Forex is just another scam.

In general, each formulates its own advantages and disadvantages, we talked only about the general ones.

How to pay taxes on Forex

To avoid becoming a victim of red tape, you can do the following:

• You can open a bank account for trading;
• Toward the end of the year, contact the broker and request a report on all transactions that have been made. This report with a seal is sent by registered mail and then presented to the tax office;
• Calculate the amount and pay 13% of it;
• At the place of registration, fill out and submit a declaration.

You need to declare any income that a citizen receives in addition to the main place of work.

Conclusion

Summing up, we can say that the time that can be spent studying the Forex market will only bring benefits.

You can earn money on this, the main thing is to correctly approach the issue. We hope that this article will be not only interesting, but also practical.

Today I will bring some fly in the ointment of the forex industry and tell the truth about forex. I hope that I will not surprise anyone if I say that you never really get into the Forex market when trading, in order to get into the Forex market, you must have an account of at least $ 100,000, because Forex operations are conducted in lots and one lot is equal to 100,000. Binary options are not a financial instrument at all, but bets. And to say binary options trading is nonsense.

The only thing that saves us in Forex from the rampage of brokers is the presence of brokers who buy liquidity (transactions) from larger brokers and large brokers themselves, roughly speaking, this is their own internal Forex, which of course does not affect real quotes, but which is very large.
For example broker Alpari UK, which has recently ceased to exist, was a very honest and large broker and was itself a liquidity provider for small brokers. His honesty was confirmed by his closing! A sharp jump in the Swiss franc led to the fact that the broker did not have time to close the unprofitable positions of clients and they exceeded the amount of money in the clients' accounts, in this situation the broker takes on the losses of traders, which Alpari did and apparently his money was also not enough to cover the losses ! It is safe to trade with such brokers because they do not act against you, you trade with other clients.
With BO brokers, you always trade against a broker, of course, some of the transactions are blocked by other clients, which is why the larger the broker, the better.
There is a risk that brokers under certain conditions will not pay you your money.

Each broker has its own limit, up to which it regularly pays, as soon as you cross it, payments stop and the broker, by hook or by crook, starts
delay the withdrawal, expecting that you will lose some of the money. This applies equally to both Forex and Binary Options. This limit is determined by everyone individually and
only by experience!

An approximate safe amount for all Forex brokers is about $1,000-1,500 dollars, for large brokers it can reach $50,000-70,000 - a vivid example of this.
For Binary Options, $500 is guaranteed for everyone and $2000-3000 for large brokers, further developments are not known, I cannot say the exact amount, some brokers may have a higher amount.

What to do?

It is necessary to break your deposit into several parts (diversify). I always use at least 4 accounts with different brokers listed on our website. Any broker can theoretically close, the larger it is, the more this probability is rapidly decreasing.
copies my trades on all 4 accounts when trading on one. If you trade BO, then you can split your $400 for example
into 4 equal parts of 100 dollars and trade in turn on each account, if suddenly 1 account is merged, it can be replenished from other accounts. You can trade, for example, by 10 transactions or by days, today the first broker, tomorrow the second, etc.

Or the second trick, always deposit only a part of the money into the account, if you want to trade $1000, deposit $100, and if you suddenly leaked, report as soon as you earned $200 (for example), withdraw.

ATTENTION!

If suddenly you are blacklisted and your money is not withdrawn. Do not torment the broker with constant requests for withdrawal, do not show him your dissatisfaction, the black list can become even “blacker”, there is no need to threaten with some kind of complaints and so on.

You need to do the following, try to withdraw a smaller amount, for example, 30-40% of your deposit, if you previously wanted 60-100%, if the withdrawal of a smaller one took place, you don’t need to withdraw more, trade a little in small volumes, maybe two months, then withdraw the remaining and leave this broker, if the amount that you were not allowed to withdraw is less than $1,000, this is an extremely low threshold, it means that the broker is really poor and does not have a lot of money at any given time, it can always just close, and then be born with a new name, or just throw you and they don't care that you stuff your reviews about it everywhere. So highly recommend get acquainted with this information - if you are inclined to trust your hard-earned money to various closed garbage dumps and pyramids such as forex trend, MMCIS and others like them.

– Before making a deposit, find out the withdrawal conditions, whether verification is needed, whether they need any documents. Until your account is verified and confirmed in all possible ways, you cannot deposit a penny.
— Before you start trading and any other actions, you should carefully study the conditions of the broker, the user agreement and other documents that are on the site.

ATTENTION!

I personally know first-hand cases that are simply amazing and this truth about forex should be made public.

1. Once I talked with a person who registered with a small broker, I don’t even remember his name, he hasn’t existed for a long time. The person traded a little, earned 50% of the deposit and decided to leave, the broker began to behave suspiciously. But all his earnings were canceled, as it turned out in the agreement, it was indicated that, at the discretion of the expert commission of the broker, the profit could be recognized as obtained by prohibited speculative strategies and canceled completely, there is no chance to prove something. And it's still good that he got back his $2000 that he brought there. The broker worked according to the scheme, I won’t give my own, but I won’t take yours either. If you leak something, then the market punished you, if you take mine, then you are not trading honestly.

2. You should never agree to any services that a broker offers you by phone or mail. Case from life: the trader received a call from the support service Insta Forex(the worst cuisine I have ever met) and offered to connect the excellent “Swap-Free” service, assured of its beauty and other “goodies”.

The man happily connected! I hope everyone knows that in Forex, when transferring a transaction from one trading day to another, a commission is charged and it is called.
The client traded quietly for about 3 months and then suddenly decided to withdraw all the money from the account, and when he made the withdrawal, his deposit was reset to zero and even set to “minus”, indicating that, under the terms of this service, the entire amount of money that was on this
saved for the whole time, they can be written off from the account, if again it is recognized by experts that the trader made some transactions only in order to profit from this service, it will never be possible to prove that this is not the case.

All of the above truth about forex refers to fraudulent brokers. Our portal presents only reliable and proven long-term cooperation. Think carefully before opening a trading account with time-tested and thousands of DC traders.

The opportunity to trade on the international forex market became available to the general public relatively recently - the first companies that provide the opportunity to trade with leverage on financial markets appeared in the post-Soviet space in the early 90s. And right away margin trading has become one of the most talked about ways to earn capital income.

As in any business, in the provision of intermediary services for trading on the forex market, leaders and outsiders, "gray" offices and scammers have appeared. Right formed the first myths and misconceptions regarding forex trading. Many of them arose from a misunderstanding of the mechanism of the financial markets, the interaction between a trader and a broker, a lack of basic knowledge about the markets, etc.

Some arise as a result of the activities of dishonest intermediaries and competition between dealing centers for customers. Anyway, you, as a private investor, need to be very clear about what trading features and risks actually exist in trading, and what are the result of distortions of the truth and outright lies. In this chapter, we will try to deal with the most common misconceptions and myths among private investors who do not participate in real trading, and therefore do not have the opportunity to see the big picture.

Forex trading is very easy

Unfortunately, this is only half the truth. Any book written by order of any dealing center will tell you how easy it is to trade on the Forex market for an ordinary person. In facilitator-led classes and workshops, this statement runs like a red line through all of the training material.

Even though Forex trading is actually not difficult and almost anyone can figure out the process, making a profit from trading is a difficult task. For, to make money on the forex market, it is not enough to learn how to use a trading terminal and master a couple of market forecasting methods. You also need to be able to objectively assess risks and protect your deposit from excessive losses.

In order to learn how to make money in the forex market, you need to spend some time and effort on learning and practicing on and off, and even after that no one can guarantee you that you will learn how to make a profit in the long term.

Fifty dollars is enough to start trading on a real account

If we talk about opening and replenishment, this is true. However, you should not count on a stable profit of more than ten dollars a month. Forex trading is one of the activities that make you cover up your mistakes with money., which we will dwell on in the corresponding section of the site, prescribe never to exceed the risk per trade in the amount of two percent of the capital. This simple rule allows the trader's capital to survive his own mistakes and, as a result, make a profit. But a series of losses happen even among professionals.

So, in order not only to "work" in the forex market, but also to receive a tangible profit, you need capital sufficient to, on the one hand, open positions of sufficient volume, and on the other hand, ensure a low level of risk on position.

Big winnings in forex are random, and in general it's like a casino

The vast majority of traders lose money in the forex market

A common thought that has little to do with reality. It is quite possible that in absolute terms, out of a hundred accounts opened with a brokerage company, about ninety may suffer losses over a certain period. However, if you look closely, many of the accounts were opened by daredevils seeking to make unprecedented profits in a short period, and some - just to "try" forex after reading a couple of articles on a popular forum.

Many of the accounts that suffered losses in a given period results of the year will turn into significant profit. In addition, it is not known how many of the traders who lost a small amount in trading with an unfinished trading strategy re-entered the market with a completed trading plan and achieved high profits. A serious approach to forex trading and adherence to simple risk management rules practically exclude the loss of a significant part of the capital.

All intermediaries in the forex market are registered abroad, and therefore unreliable

This misconception is spread, as a rule, by local stock market brokers.

Almost all companies offering forex trading services operate through their representative offices in Russian-speaking countries, but are registered abroad. This is primarily related to imperfection of legislation which does not bring this type of intermediary activity under any of the existing types of activity. In the event that local legislation still classifies this activity and streamlines relations between brokers, clients and the state, the vast majority of companies will immediately move closer to clients.

Despite the remoteness of the country of registration of the company, most serious dealing centers offer fairly reliable guarantees in case of claims from the client. This may be the creation of a compensation fund in a third-party regulatory organization (for example, KROUFR) or deposit insurance clients in large insurance companies.

Emotions have no place in financial markets

Emotions must be put aside when you are trading and you must be ready to persevere no matter what situation you find yourself in. If losses keep mounting, you must be emotionally prepared for it, must take control and move on.

In addition, absolute faith in the financial markets is critical. You just need to believe that you can really make money in the financial markets - and you must banish all doubts. You need to find a way out and not give up when things get tough.

Emotions have no place in trading. Absolute faith in the financial markets is essential to success.

Everything is a little different today

The truth about financial markets is that most people view trading as a task that requires high intelligence, and that it must be accompanied by large amounts of capital in order to invest.

So it was before. Things are a little different today, mainly due to technological advances that have affected market regulation, leverage, and the availability of information.

Trading on financial markets has become more accessible to investors and the general public. Now, almost anyone can invest in the financial markets, be it stocks or currencies. The Internet and online trading have made it possible to trade without leaving home. This gives you complete control over your trading account and allows you to have the same information as the banks.

Now almost anyone can invest in financial markets - be it stocks or currencies.

Are financial markets just for the rich?

Large sums of money are no longer required for trading. You can start trading with as little as $100. This was made possible thanks to the leverage that brokers provide for trading.

Always take precautions when using leverage. It is recommended to limit your risks to 2% of your account balance. That is, if you start with $100, your loss should not go beyond $2 on each trade.

Capital preservation is essential to long-term success. A profitable trading strategy cannot be implemented if you do not have cash.

Be careful when using leverage, limit your risks to 2% of your account balance.

No need to be seven spans in the forehead

When it comes to the financial markets, intelligence can really be the reason you lose. But you also need to have emotional fortitude. Emotional toughness helps you control your emotions and keep them from clouding your mind when making decisions, especially when you are faced with a stressful situation.

Here is an example where uncontrolled intelligence can hurt: highly intelligent people tend to be used to being always right in their daily lives, and this can create problems for them. So, if things go wrong in trading, it will be difficult for them to take a loss.

This fear of being wrong makes highly intelligent investors hold on to their stocks when they shouldn't. In this case, they may suffer more losses than they should. In some cases, they will end up destroying all of their trading capital. Some professional traders even look for psychologists to help them manage their emotions.

Emotional toughness helps you control your emotions and keep them from clouding your mind when making decisions.

What about online brokers? Are they reliable?

One of the most popular and most cost-effective ways to invest in the financial markets is to trade through an online broker. However, you may run into some problems with any broker you choose. The most frequently asked questions are about the following:

price slippage;

Errors in the operation of the broker's trading platform;

Questions regarding margin;

Early execution of stop losses;

Withdrawing funds from the account takes longer than it should.

Brokers in the online business market to make money just like any other commercial company. They also sometimes make mistakes. Be alert and respond quickly when such problems arise.

Brokers tend to try to fix such issues quickly as it affects their reputation. When choosing a broker, it is worth asking yourself: “Which broker will I have the least problems with?” and analyze brokers in the forex market.

Take your time when choosing a broker. Conduct an analysis of the services of different brokers before opening an account.

Don't be fooled

Many websites and brokers offer a 100% success guarantee. Some even promise that they will help you double your trading capital in a few days.

You can hear stories from traders on blogs and websites that they have made over 100% profits in a few weeks.

Yes, it is entirely possible to achieve such a result - but don't be fooled. Those same traders can lose millions in the long run.

Many traders (especially beginners) come across such tempting offers. However, it is worth remembering that this is risky, as a small market movement can destroy the entire volume of a trader's trading account.

The reality is that professionals and financial institutions consider a successful year when they make at least a 20% return on their initial investment. If you start with $10,000, a profitable year could give you around $2,000.

The reality is that professionals and financial institutions consider a successful year when they make at least a 20% return on their initial investment.

Conclusion

The truth about financial markets is simple - you can make millions and you can lose millions. What happens depends on your knowledge, trading experience and how you deal with your emotions.

Recognize Being fully aware of this will help you become more confident in trading the financial markets. Trust your intuition. But always remember: your instinct is influenced by your knowledge and experience.

Summary

Emotions have no place in trading. Absolute faith in the financial markets is essential to success.

Now almost anyone can invest in financial markets - be it stocks or currencies.

Be careful when using leverage, limit your risks to 2% of your account balance.

Emotional toughness helps you control your emotions and keep them from clouding your mind when making decisions.

Take your time when choosing a broker. Conduct an analysis of the services of different brokers before opening an account.

The reality is that professionals and financial institutions consider a successful year when they make at least a 20% return on their initial investment.

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Risk Warning:
Beginners should be aware that Forex trading carries high risks. Before you start trading on real accounts, you need to prepare theoretically and practically, to make sure that the trading strategy you have chosen is effective by trading on free demo accounts. Do not trade money that you are not prepared to lose.
The Forex-Resource portal strives to provide all the necessary information that will be useful for traders to conduct successful trading. However, "Forex-Resource" is not responsible for your trading actions based on the information provided on the pages of the portal.