Lesson #1: What Is
FOREX and How to Take Part in the World's Largest, Most Liquid
Trading Market?
"If you think what you do is
great, you ain't seen nothing yet. I'm an FX Trader".
Those were the words I heard over three
years ago, and since then, regardless of how confrontational,
competitive, or in-your-face they may of seemed at the time,
I'm glad I heard them.
I was just introduced to what
we will affectionately call, throughout this mini-course
(seriously), "The World's Most Powerful Home based Business"
(but a lot more on that
tomorrow).
Even though you, and I, have had the opportunity to take part
in trading foreign currencies for profit (in the same way banks
and large corporations do) since 1998, it is just now becoming
the cool, hip, new "thing" to talk about at parties, business
events, and other social gatherings.
Even though it HAS been somewhat of a loosely guarded
secret, more and more investors are turning to the all-
electronic world of FOREX trading for income and profit because
of its numerous benefits & advantages over traditional
trading vehicles, like stocks, bonds and commodities (stay
tuned, for tomorrow's email, to get the inside scoop on
this).
But, still, whenever something SEEMS new or is just becoming a
part of social conversation, news articles, and water cooler
gossip, misconceptions have to be overcome, the mind has to be
open and the slate has to be clear for starting out fresh with
the CORRECT information.
So, in this first Lesson, it is our attempt to give you some
solid, but not over-detailed, information on just what the heck
"FX" (FOREX) means, what it is, and why it exists.
Plus, we wouldn't want you to be the one giving the blank
stare, at the parties, when someone brings it up :-)
If you'd like to make $_200 to $_3,000 for as little as ten
minutes of work -- work that involves minimal risk, but plenty
of upside potential -- then this ongoing email mini-course if
for you.
As a friend of mine said, "Trading FOREX is like picking money
up off the floor. NOT trading FOREX is like leaving it there
for someone else to pick up." Others in the industry have also
said, "It’s like having an ATM machine on your own
computer."
In this 20-part e-Course series, we will show
you what they mean.
Here's the all-steak, no-sizzle explanation (one we feel you'll
appreciate) of what FOREX is and how traders, like us, profit
from it:
The Foreign Exchange Market, also referred
to the "FOREX" or "FX" market, is the spot (cash) market for
currency.
But, don't mistake what we're doing as trading the futures
market, where you buy a contract to purchase a particular
currency at a future price in time.
What we do is much less risky than trading currencies on the
futures market, much more profitable, and a lot easier, than
trading stocks. [note: we'll tell you more about this,
tomorrow, in Lesson #2]
So, you're probably wondering where it's at ... or ... how to
access the FX market?
The answer is: FX Trading is not bound to any one trading floor
and is not centralized on an exchange, as with the stock and
futures markets. The FX market is considered an
Over-the-Counter (OTC) or 'Interbank' market, due to the fact
that the entire market is run electronically, within a network
of banks, continuously over a 24-hour period.
Yes, if that's the first time you've heard about an
all-electronic market, we know this may sound somewhat
intriguing to you.
And, it should be, because it certainly is.
Here's what you are actually trading when you participate in
the Foreign Exchange (FOREX) market:
Essentially, like the large banks who use the FX market to
protect themselves from the fluctuating exchange rate of
different currencies, as an investor, what we're doing is
simultaneously exchanging one countries currency for another.
So, in actuality, we're electronically trading a currency-pair
and the price that is quoted to us is the exchange rate between
the two currencies.
If you just said, "Huh?" ...no worries, we've got ya covered
with an explanation.
In other words, simply the quoted price is how many of the one
currency is worth 1 of the other currency.
Example:
EUR/USD last trade 1.2850 - One Euro is worth
$1.2850 US dollars.
The first currency (in this example, the EURO) is
referred to as the base currency and the second
(/USD) as the counter or quote
currency. |
Okay, okay ... let me STOP myself before I get too deep into
Currency Pair education (we'll cover that with you in Lesson
#3)
Yes, this is a lot to share with you about this relatively new,
exciting market of unlimited profit possibilities – a market
that has so many more advantages over other investments, and
even over other businesses, that it will blow your socks
off.
And, being the curious, ambitious guy that you are, I know
you'd like to dive in. So, stay tuned for tomorrow's email
where we'll tell you why FOREX Trading is the ideal business
and what its benefits are over other investing vehicles.
But ..... WAIT !!!
I'll at least give you something to chew on overnight.
We get a lot of questions about FOREX - from folks who've never
heard of it to advanced, highly-skilled traders.
The one question that keeps popping-up from the former group of
people is this:
"If people, like you, are making so much money by trading the
FOREX, why would you share this information with
anyone?"
| SIDENOTE: a lot of
courses will spend several pages introducing the
FOREX by giving a historical perspective. In our
opinion, for a trader, this is a waste of time.
Yes, it could be interesting to learn about the
details on Who,What, When, Where and Why but, just
know that historical knowledge will not help you to
become a FOREX Trader. However, we will leave you
with the QUICK Info below: |
Here's the answer...
The FOREX has a DAILY trading volume of around $1.5 trillion
dollars - 30 times larger than the combined volume of all U.S.
equity markets. This means that 1,498,574 skilled traders could
each take 1 million dollars out of the FOREX market every day
and the FOREX would still have more money left than the New
York Stock exchange every day!
Wow !
Yes, wow indeed. The FOREX plays a vital role in the world
economy and there will always be a tremendous need for the
FOREX. International trade increases as technology and
communication increases. As long as there is international
trade, there will be a FOREX market. The FX market has to exist
so a country like Japan can sell products in the United States
and be able to receive Japanese Yen in exchange for US
Dollar.
So, before tomorrow arrives, just keep this in mind:
There's plenty of money for plenty of traders to use the same
trading techniques / tactics and profit immensely. And, with
only 5% of the daily turnover of volume coming from banks,
government and large corporations who need to hedge, imagine
what the other 95% is for -- bingo, for speculation and
profit.
Stay Tuned for tomorrow's
email from us. It will have the following Subject
line:
Lesson 2 - The Rapid Forex e-Course
We will be discussing the many benefits of FX
versus other investment / income-producing options
and explain why it's the "ideal
business" |
|