Trading financial market is a brilliant source of income which can be very rewarding for minimum work possible. This isn't a get rich fast scheme. Its long term investment and your capital will grow slowly at the start, averaging £30-£150+ daily.
Forex is a type of trading, that’s works on the financial markets. We enter trades buying or selling one currency pair against another. Almost everyone has done this at one stage in there life but on a less complex level. Simply going on holiday is a currency exchange. Lets say you are travelling to the United states from the UK; an example is you are going to take £1000 pounds and get back $2000 dollars at that current exchange rate. So 2 weeks later you come back and change $2000 dollars back into pounds and that initial £1000 you gave them is now worth £1,200 as the pound has increased in value compared to the US dollar. You have made £200 profit. This is essentially what we are doing on the Forex market, we buy one currency against the other, hoping that the one we buy will increase is strength. So a buy trade on GBP/USD would want the pound to be worth more than the US dollar when we end the trade. This is a basic way of looking at the Forex market, we use a large number of tools to work out the movement of these currency pairs.
With our analysis sending trades they will look something like this
USD/CAD – that is the currency pair we are trading at that time. Simply find the pair (this is what we call two currencies that we trade) on the MT4 platform, some might not be preloaded so add the in the top corner of the app.
BUY - This is the direction the pair intended to go for us to make profit and capitalise on that movement. Buy is a up movement and buy us an up movement. You might hear someone saying Short position or Long, going short means to sell, going long is to buy.
Stop loss – a SL is short for stop loss, this protects capital for us, with news and changes in the market our analysis can change and prices can move in the other direction. What this does is closes the trade and stops more loss than we can manage happening. Losses happen in trading, but a SL stops us from losing more than we can afford. When a trade has been running and moved in the predicted way, we will move the SL in to profit. Simply this means that if the trade goes up when we are in a short position, we will still make a profit from that trade. Forex is all about management of money and making your money work for you, rather than you working for your money.
Take profit – this is where forex becomes fantastic and can provide a great income from many of us, TP stands for Take profit, this is a level in the market where we think the price will hit or will run out of momentum and change direction, this allows us to make as much profit as possible from the market. This price can be hit at anytime of the day and will auto close a trade and bank the profits from that.