Why Now Could be a Good Time to Learn to Trade Currencies
Carpe Diem (Seize the Day)
World news and events are often a catalyst for movements in the foreign currency markets (Forex), but few make as many waves as the recent decision by the UK to leave the European Union. The Brexit vote sent shock waves throughout global financial markets breeding volatility and creating a financial environment where there are large gains to be made. Combine this with a number of other huge world events, the impending presidential election in the USA being just one of them and you have an arena where trading the Forex markets is a tantalising prospect.
At Your Leisure
Forex trading suits many traders as it’s so accessible, the markets open on Sunday night and are traded around the clock until Friday evening. Forex is also the most traded market, up to $5 trillion worth of currency is traded every day. It’s also easy to understand, any single trade involves 2 currencies, for example, the British Pound against the US Dollar (GBP/USD), traders simply decide which they think will increase in value or decrease in value and buy or sell accordingly.
Learn the Ropes
If you’re a first time trader or have little experience, you will want to learn about the Forex markets and how to place trades before you get started. Many online trading sites offer a demo version of their trading platforms and you can use these for free and without risk. Using a demo trading platform will allow you to familiarise yourself with trading charts, market terminology and to practice trading until you’re confident enough to trade using real money.
The News of the World
If you’re new to trading or if you’ve traded in other markets, but are new to Forex, one of the first things you’ll come to learn is that Forex markets rely heavily on global economic and political news. Factors such as interest rates, inflation and employment statistics all play a role in dictating the strength of a particular country’s currency. To be a successful Forex trader it’s important that you have an effective way of monitoring current affairs and it’s likely that you’ll want to use a combination of sources; the internet, social media and TV to list some of the most effective. Here it’s very much a case of “the early bird catches the worm” as it is as much about how quickly you can you access the news as it is using the information to trade on.
Forex is a fast moving and exciting trading environment to be part of and using a disciplined and sensible strategy can pave the way for large profits. The current political and economic landscape lends itself well to Forex trading and so the prospect of starting a trading portfolio or broadening it to include Forex is one well worth thinking about.