Foreign exchanging hands

What is Forex

What is this FOREX you speak of….well you already know what it is.

Well imagine you’ve already read the posts/articles here, gotten the skills and are just straight making a killing on the Forex market. Have you imagined…mmh that private jet. Well you’ve just taken the jet and landed in Japan for you 3 month long holiday just because you can. So you’ve decided to learn martial arts from the masters because the dojo in your country isn’t where Bruce Lee learnt. You need to change your foreign currency, lets say dollars, to the local currency in japan so as to pay for the martial arts lessons. So you exchange your dollars for Japanese yen.

How do you exchange the dollars to yen you might ask, well when you can go to nearby Forex bureau and see the various prices for dollars and yens. You realize your one dollar(USD) can buy 100 Japanese yen (JPY). So you take your 100 dollars and exchange them for 10,000 Japanese yen. By doing this you have now participated in the Forex market or as its known in Forex terms you have sold your dollars(USD) AND bought Japanese Yen (JPY).

As have enjoyed your stay in Japan, and learnt how to punch through walls, now you are back at the airport and need to change your left over currency (if there’s even any left) to your dollars to spend back home. You go back to that Forex bureau and realize the price has changed from 100 yen for one dollar to 102 yen for one dollar. This fluctuation or changes in price is  how we make money in the Forex market.

The foreign exchange market also known as “FX” or “Forex” is the largest financial market in the entire world. At this point if you don’t know what a financial market is you are on the wrong path young grasshopper. How is it the largest market well the daily trade volume(how much is traded per day) is an enormous $5.3 trillion dollars a day, imagine $5.3 trillion dollars that’s enough to buy several countries and still have more than enough change. Compare this to the NYSE (New York Stock Exchange) which has a day trade volume of a measly $22.4 billion, pffff not even a trillion.

You’ve probably heard people always talk about the stock market but it is tiny compared to the Forex market. If I was you I think I know where I should be concentrating. The Forex market is 200 bigger but the catch is $5.3 trillion is the entire global exchange market but retail trader (that being us) trade the spot market which is about $1.49 trillion, still way larger than the NYSE.

Lets go to WHY YOU SHOULD TRADE FOREX….

5 Comments

  • Simphiwe Nyembezi

    Reply Reply January 7, 2017

    I am a young who graduated in Tourism Management, Living in South Africa. Its been long time trying to find job until I managed finding one little job that can afford my living, even though its not relevant. So many years I have been looking for something that I can do to make myself more money, until I saw this Trading thing on sites. I also want to trade and I am interested in it, but I need someone to really guide me and help me through it so that I can understand it clearly.

    • admin

      Reply Reply February 2, 2017

      Your in the right place

  • Makgotso

    Reply Reply August 17, 2017

    Hi I’m a young woman living in south Africa.I’m studied business management and now started a small business in events planning.its doing k BT it only gets a little busy in summer since well its a seasonal business.now wanna start trading but need to learn it first so how or where do I begin.I need a mentor who can show and teach me the basics so I really need help.

    • admin

      Reply Reply August 18, 2017

      Your in the Right place,
      Go through the articles and read the emails.
      Trading is as flexible as you need it to be and make it work for you.

  • Craig

    Reply Reply August 31, 2017

    I realize that this investing effort has the potential of being a benefit and I do hope that I will be capable of interpeting everything properly and I will say that I appreciate your input James
    . . . Thank You, Craig Manning

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