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| Being thrown in at the deep end
Dear Subscriber,
The screen flashed.
I had just done my first forex trade. I had bought 5 million US dollars against the Japanese Yen!
It was all over in about 10 seconds.
Talk about being thrown in at the deep end.
It was 15 years ago and I was backpacking...
I landed in Hong Kong and had to learn fast.
Within weeks I found myself in the centre of the huge dealing floor of the now infamous Lehman Brothers.
Like any new business field, there's market lingo to learn.
It can be a bit daunting to begin with - like learning a new language.
But you soon get the hang of it.
The lingo will come, but to profit in forex you need to learn a bit about how the markets work.
Today I want to look at what causes price movements...
You see, the forex market is like a huge tug of war.
There are 'bulls' and 'bears'.
You've probably heard those terms before: bulls are the players who want the market to go up - bears are the ones who want the market to go down.
The pressure from these two camps forces the market price up or down, much like the two tug of war teams inching backwards and forward as they tug on the rope.
In tug of war, who goes forward or backwards depends on who's the strongest at any moment.
Sometimes the teams are equally matched and they pull but there is no movement. Other times, one team loses its foothold and gives away some ground.
Then, all of a sudden, a team slips and begins to slide. The flag on the rope shoots through the finishing line.
It's just like this with forex.
Yes, I know thousands of factors affect market prices of currencies... a country's trade deficit, a government's monetary policy, the actions of banks and speculators...
But basically, it all comes down to how many bulls and bears are pulling against each other.
Forex charts can show you who is pulling the hardest and give you fantastic opportunities to profit.
And you can learn what to look for before risking your own money.
Because the main reason many new traders lose out is that they don't take the time to learn about trading before risking their money.
"Tired after work but keen to make a serious second income...?" In my first year this 'fall-out' secret made me over £17,000.00 in my spare time, after I came home exhausted from my mind-numbing day job... enough to pay for a luxury holiday to Florida and buy a better car than my boss!
If you can spare 10 minutes an evening after 7.00pm, I'll show YOU how you can do the same!
But you must be happy with one thing for this to work...
Learn how to trade first before risking your money
What a fantastic skill to learn, right?
When you know what to look for on a chart you can see what the market has done and spot the clues to what it's likely to do next.
When you get the hang of it, it's only a matter of time before you could become an independent forex trader.
Now, in the next issue I'm going to share with you something that could help with your forex trading even more...
In fact, it's something that I've been personally using to pick up consistent profits for more than a year.
So, make sure you keep your eye out for your next issue.
Best wishes, Richard Hill Editor Forex Round-Up
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