Forex Trading — 3 Embarrassing Truth Revealed | Faramira

Forex Trading (or in short FX Trading) is either buying or selling foreign currency, with leveraged money, and hoping to make a profit due to market volatility. It’s that simple (if you want it to be)!

Others, however, will give a varying degree of definition which will have terms like an exchange, spot market, futures market, slippage and so on. But who cares, right? The idea for us (all novice) is to just open an account, deposit our first money and do a trade as soon as possible, and of course, earn some quick money.

The figure on top shows a chart of EURO V/S U.S. DOLLAR. It is showing the price movement of Euro against US Dollars on a daily basis. The chart is very simple. The price can only move two ways, Up or Down. If we sell Euros and the chart moves down, then, Bingo, we make money and if we had bought Euros then we would have lost money.

It’s that SIMPLE!

You can either win or you can lose. Even, without any strategy, just by flipping a coin you should be able to win 50% of the time as the probability of the chart moving either up or down is 50/50. It is this deceptively simple mechanism to win…