Forex Trading Workbook Chapter 1 (Rough):

PRE-PREFACE: Personally, I am a skim reader. I am not a naturally patient person when I have information that I want to extract in front of me, and I want to have the most important pieces of knowledge taken away as quickly as possible. If you can relate to me, then this is the book for you! I will keep the introductions brief, and dive into the “meat” as concisely as possible. Thank you for reading and happy trading!

 

PREFACE:

In a complex world, why bother to make life even more worrisome by diving head first into the foreign exchange market? The simple answer is: you shouldn’t; at least not without the right 1) information and 2) strategy. I will tell you now and I will tell you honestly, trading in any market is a losing game without the right plan. Learning how to trade is a decision that people make to live their dream of having freedom in terms of time, money, and location. Your actions are as important as your dreams and it up to you to make them happen.

A brief tour of trading:

In our society, cash is king and prices moves up and down freely. The principle of trading is to make money off fluctuations in price. Let’s take an example of an imaginary wanderer named the Trading Traveler. Our adventurous wanderer here makes a trip to Europe and buys the EURO with the American dollar. Over the course of his trip, the price of the EURO goes up and the price of the American dollar goes down. When he gets back , he sells the EURO for a higher price than when he bought it. The Trading Traveler just made a neat profit my friends! What’s the difference between you and the Trading Traveler? Don’t answer that question because there isn’t. You may not be thinking about a trip to Europe rather to have fun than to flip a currency, but the good part is, these transactions can be done remotely at your own leisure. As a matter of fact, I prefer the Foreign Exchange Market over the Stock Market simply because of the Foreign market is open 24 hours a day, 5 days a week. This allows you to make transactions while building your capitol and offer income potential to live quite comfortably.

A little secret about money:

Take the entire concept of what you believe money is supposed to be, the power it has, and the importance it carries everywhere you turn. It is all an illusion. Why do I say this? Illusion is a strong word, but I say so with dire intentions. The reason money works as a concept and as a substance is because of the faith people have in it. So what’s the secret? This illusion can be taken to your advantage. You no longer have to be a slave of finances when you know how “the martix” works. A bad economy, increasing unemployment, or a falling GDP are no longer excuses for a person who is protected from these uncertainties. Traders make money in bad economies and in good ones. Why? Because any change in price means there is potential for profit. As a matter of fact, while most people were loosing their jobs, their life savings, and peace of mind during the Great Recession of 2008, there were individuals who were paradoxically cashing out with extreme profits. These opportunities were not just with day trading or the Foreign Exchange, but with Real Estate and other assets that fluctuate in value as well. The question I have for you is which side do you want to be on?

Next Chapter:

Playing to Win rather than to avoid loosing

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s