How To Make Money In Forex Market

Before I give you the definition of bullish and bearish, let us see a glance on how trader making money in forex.

Its actually very simple, which is buy low and sell high.

Example: 

As being shown at the chart above we can enter the market by buy at the price of 0.9869. We take that point as the lowest price we can get from the market. As the time move, we can see the point start to go up at certain point that we can consider it as the highest it can go. When it hit at 0.9981 we decide to sell it. Let calculate how much profit that we get.

0.9981 - 0.9869

= 0.0112

To know how much you just take as profit, I need to teach you something that call Pip.

Quick Review : What Is Pip?

Pip is stands for “Percentage in Point”.  A pip is the smallest price increment in forex trading. You can see many currency pair are always shown to 4 decimal point. However, any currency pair related to Japanese yen, there are only given at 2 decimal point. It is very important that you understand what a pip is in the forex trading because you will be using pips in calculating your profits and losses.

Now we continue, 

0.9981 - 0.9869

= 0.0112 is 112 pip

For every normal forex broker, 1 standard pip is equal to USD $10.  

$10 x 112 = $1120

So, just with 1 trade you already make $1120. Is it this simple? Definitely yes, this is how forex trader making money.

Don’t forget to read my post after this about the bearish and the bullish…coming up next..

For any further question or request question, please email me at forex.qna@gmail.com

Upcoming

In the upcoming post, i will tell you about the bullish and the bearish....
This is all related to how you going to making money in the forex market and everything...
So, watch out for this upcoming post..............

Basic Of Forex : 2

We continue on the subject of The Differences Between Stock and Forex.

What I'm going to tell you is the breakdown from the points that I mentioned to you from the last post (Basic Of Forex).

 

VS

   Stock    : Traders buy and sell stock

   Forex    :Traders buy and sell currencies

• People are always confused for these two types of markets. What can I tell you here is, the stock market is about ‘you’ buying a stock of a company. It means that, you are a shareholder for the company even just for 0.01%. For the forex market, you are buying or selling the value between two types of currencies.

 

 

 

 
               Stock    : There are thousands type of stock


               Forex    : There are 6 major world currencies

• If you want to buy a stock, you will find many types of stocks from different companies which require you to evaluate at the first place. This means that you need to understand and know all the situations that happen in the company that you want to buy the stock. It is simply because every rising or falling price of the stock depends on the efficiency of the company. For instance, in the forex market, you are exposed with well known currencies that you basically know like US Dollar (USD), Pound Sterling (GBP), Euro (EUR), Japanese Yen (YEN), Australian Dollar (AUD), and Canadian Dollar (CAD). With this small amount of selections, you’ll be able to focus on the currencies pair. 

 

 

 

               Stock    : Buying stock is easy, to sell is hard


               Forex    : You sell or buy any time you want

• If you want to buy the stock in the stock market, you'll need to wait and find people who want to sell. If you are lucky enough, you might be able to buy from the new company stock that just has been listed in the market. How about to sell it? To sell your stock, you must find buyers that want to buy the value of your stock at that point of time. However, when the market is crumbling it’s hard to find the buyers because people don't buy the stock during that time. So you'll stuck with it. In the forex market, if you want to buy or to sell your trade, you don’t need to find the buyers because all of your transaction is between your broker and it is directly channelled to the bank. Even when the market is going down, you still have an option to sell your trade to make profit. You can get in and out from the trade in the forex market at anytime you want without looking for people to buy your position. Lovely, no one loses in the process.

 

 

 

 

               Stock : Limited buyers and sellers


               Forex : Unlimited buyers and sellers

• In the stock market, there are limited buyers and sellers because every stock companies have their own certain amount of limit. This causes people confuse to get what are the types of stocks that they want. However, in the forex market people can buy or sell at anytime they want. The best of all, everyone can buy or sell in the forex market without being worried the limit for each currency pair. There are no limits between currencies pair.

 

 

 

 

               Stock : Traders can only trade when the market is open


                Forex : Traders can trade 24hours a day

• What do you need to remember when you are buying the stock is to know under which market that you have bought your position. As for example, you buy a stock from Wall Street Market in US. What will happen every time you want to buy or sell your stock is to make sure the transaction is happening between 9.30 am-4.30pm (US Time Zone). If you miss, you need to wait for the market to open the next day. Unlikely in the forex market, you have 24hours to do your trading. It is simply because forex market does not have a base market like the stock market. It continues by different markets that open at different time. For example, we have the Japanese market which is surely open in the different time from the Wall Street market. What is happening here is an automatic open market in the world of forex. The advantage here is people can trade forex at anytime that they want. As a word from my sifu, "Don't do something that sell your time, do something that buy your time" .

 

 

 

               Stock : One way maket


               Forex : Two way market

• Like my point before, a stock market is depending at the place you buy the stock. You are bounded to that specific market timeline in doing your trade. As for the forex market, the time is yours because you have 24hours open market.

 

 

 

 

               Stock : Effected when economy crisis happens


               Forex : Doesn't have effect with the economy (Recession Proof)

• Looking back what had happened in 2008-2009, the economy crisis happened and the entire world were affected by the crisis. Even the strong economy country like USA took a big punch and now tries to get recovery. For certain countries in Europe like Greece, it also got hit as it was being declared as bankruptcy in accordance to its economical status. When economy goes down, it takes the stocks, properties, and everything down with it. Everyone wants to sell their stocks at the time but nobody wants to buy. Even the public listed company like Lehman Brothers goes down with the economy. However, in the forex market many traders get their highest profits when the economy crisis happens. Like I mentioned to you earlier, it will never affect forex market because we follow the trend wherever direction it goes. Even the stupid trader will make profit at this time.

 

 
I hope my explanation in this topic can be understood by everyone who seeks for the knowledge. If you have any questions or even wants to correct my post, do comment and email me at forex.qna@gmail.com. Thank you.


Note : Although in this post I give detail about the differences between stock and forex market, it doesn't mean that the stock market is not good to trade. This is just my point of views about the market as a forex trader.

Basic Of Forex

Many people can’t spot the different between stock market and forex market. The basic is the same which is buying at the lowest price and sell at the highest price. Now I will show a simple table to show how the different between this two type of market for the traders.

The Different Between Stock and Forex

Stock	Forex
Traders buy and sell stock	Traders buy and sell currencies
There are thousands type of stock	There are 6 major world currencies
Buying stock is easy, to sell is hard	You sell or buy any time you want
Limited buyers and sellers	Unlimited buyers and sellers
Traders can only trade when the market is open	Traders can trade 24hours a day
One way maket	Two way market
Effected when economy crisis happen	Doesn’t have effect with the economy

Next… I will breakdown the points that are shown in the table above.
Wait for the upcoming info..thank you

Apa Itu FOREX?

Forex (fx) adalah singkatan bagi foreign exchange. Forex merupakan  2 nilai matawang berlawanan antara satu sama lain. Sebagai contoh USD vs JPY yang bererti US Dollar melawan Yen Jepun. Hasil dari perlawanan USD/JPY ini menghasilkan data yang akan ditunjukkan secara 24jam di dalam bentuk graf.

Tetapi yang menjadi persoalan adalah bagaimana menghasilkan duit dari dunia forex ini? Ini juga merupakan soalan biasa bagi saya sewaktu mula-mula mengenali forex.Untuk memahami situasi ini, pertama sekali anda harus tahu bagaimana kebiasaan jual beli berlaku di pasaran. Kita ambil contoh urusan jual beli saham. Untuk membuat keuntungan dalam pasaran saham sudah tentu dengan membeli pada harga yang murah dan jualkannya pada waktu harganya meningkat. Tetapi apa akan berlaku jika keadaan menjadi sebaliknya. Apabila harga saham yang dibeli jatuh melangkaui harga asal anda beli, maka anda mengalami satu urusan saham yang rugi.


Adakah ini berlaku di dalam pasaran forex?


Ya, sudah pasti. Apa sahaja yang naik pasti akan turun. Tetapi berbeza dengan pasaran yang lain, apabila berlaku kejatuhan ekonomi, pasti memberi kesan kepada semua jenis pasaran. Namun pasaran forex mempunyai kelebihan dimana keuntungan dapat dibuat paling tinggi pada waktu kejatuhan ekonomi. Lakukan sell dan anda akan membuat keuntungan mengikut kejatuhan pasaran. Apa yang dimaksudkan di sini adalah tidak kira apa sahaja keadaan pasaran dunia sama ada naik atau turun, ia tidak akan mempengaruhi forex trader dalam menghasilkan keuntungan. Paling penting adalah ikut trend pasaran dan hanya dengan satu klik, anda dapat menghasilkan duit.

What is FOREX?

Forex (fx) is known as foreign exchange. It is about two currencies that gainst each other. For an example, USD vs JPY which means the US Dollar against Japanese Yen. All the data for the USD/JPY will be shown live 24hours in the chart.

However, how to benefit from it or making money in the forex world? It’s a common question even for me when I first heard about forex. To understand this, you first need to understand how the normal trade that is being used by the world. For an example, let’s take a look at the world of stock market. In order for you to make profit, you must buy a stock in the lowest price and sell it at the highest price that you can get. But what will happen when the market turns against you? This means the value of your stock declines from the price you have bought. Automatically, you have lost in your trade.

Does this happen in the forex market?

Yes, it does. Everything that goes up will surely go down. Different from other types of trades, forex trading has its own advantages when the economy goes down. You can still sell and make a lot of money. So, what it means here is no matter how the market shows you either it is an uptrend or downtrend; it never gives effects to forex trader in making money. What you need is to be part of the trend and just by a click, you can make money.