Does anyone of you have any idea on how does forex investment work? Try digesting these facts.
First of all, it’s not necessary for an investor to hire a consultant, which is usually a company appointed and monitored by a licensed broker. If you know how to predict the market, you could invest on your own on line. Secondly, you must have a capital of about USD 10,527.00. The clients who want to invest pay the sum of money to the licensed broker through the bank. The consultant only helps the clients predict the forex market and manage the transactions.
The most popular and stable currency to be invested in would be Euro and Great Britain Pound. Each time before a transaction is made; the consultant predicts the trend of the market and consequently decides the type of transaction. Current chart of the currency the clients would like to invest in is analyzed. The analysis includes evaluating the history of the market, identifying the signals on when to buy or sell, and managing the risks.
Forex investment is very much different from shares investment, mainly because of the market trend. Your investment is still profitable if the currency price goes down. The important fact about currency trading is that it always has the lowest and highest price, whether it is buying or selling. The price will go down before it reaches the highest point, then climb back up when it almost reaches the lowest point. When we predict that market is going up, we make a buy new transaction, meaning that we buy at low price and sell back (buy close transaction) when it reaches higher price. Well, that should be the logic. When the market is predicted to go the opposite way, we make a sell new transaction. Why make a transaction at a low price? You thought you’d loose your money, but don’t fret just yet. Sell new means you are going to sell the currency at that price before you close the transaction. So, “when do I buy?” you may ask. The transaction completes when you buy close it at a price lower than when you open the transaction. Does it make sense to you? I hope so!
Then again there are always risks. Sometimes, the market is not as you have predicted, but you could take some measures to counter it. Let’s say you predicted the market will go down, so you make a sell new transaction, but at one point, the market goes up. You could lock it there by making a buy new transaction and close it when it reaches its highest price. When the price starts going down, you could close the first transaction, or if you have gained so much from the closed transaction, it won’t hurt to loose this transaction, right? Hm…
Anyway, now you have some idea on how this business goes. Have you started thinking on investing?
First of all, it’s not necessary for an investor to hire a consultant, which is usually a company appointed and monitored by a licensed broker. If you know how to predict the market, you could invest on your own on line. Secondly, you must have a capital of about USD 10,527.00. The clients who want to invest pay the sum of money to the licensed broker through the bank. The consultant only helps the clients predict the forex market and manage the transactions.
The most popular and stable currency to be invested in would be Euro and Great Britain Pound. Each time before a transaction is made; the consultant predicts the trend of the market and consequently decides the type of transaction. Current chart of the currency the clients would like to invest in is analyzed. The analysis includes evaluating the history of the market, identifying the signals on when to buy or sell, and managing the risks.
Forex investment is very much different from shares investment, mainly because of the market trend. Your investment is still profitable if the currency price goes down. The important fact about currency trading is that it always has the lowest and highest price, whether it is buying or selling. The price will go down before it reaches the highest point, then climb back up when it almost reaches the lowest point. When we predict that market is going up, we make a buy new transaction, meaning that we buy at low price and sell back (buy close transaction) when it reaches higher price. Well, that should be the logic. When the market is predicted to go the opposite way, we make a sell new transaction. Why make a transaction at a low price? You thought you’d loose your money, but don’t fret just yet. Sell new means you are going to sell the currency at that price before you close the transaction. So, “when do I buy?” you may ask. The transaction completes when you buy close it at a price lower than when you open the transaction. Does it make sense to you? I hope so!
Then again there are always risks. Sometimes, the market is not as you have predicted, but you could take some measures to counter it. Let’s say you predicted the market will go down, so you make a sell new transaction, but at one point, the market goes up. You could lock it there by making a buy new transaction and close it when it reaches its highest price. When the price starts going down, you could close the first transaction, or if you have gained so much from the closed transaction, it won’t hurt to loose this transaction, right? Hm…
Anyway, now you have some idea on how this business goes. Have you started thinking on investing?