What the Heck Is Forex Trading and how does it work?

in Business

We’ve seen many people taking Forex more seriously for the past year. For some, it is because of the pandemic, since they are considering another way of investing. Others are the fact that curiosity finally got them to do something about it. Despite people being reserved about it since Bitcoin came out, many decided to take the leap in 2020, and they are continuing to do so in 2021.

Many think it’s sketchy since Forex operates on the internet, but don’t you do online shopping and much more using exactly the internet? Forex’s beauty is that it is a decentralized market thanks to the World Wide Web, meaning it operates solely on the internet. Therefore no authority can fully control it, giving it more transparency and more opportunities for people worldwide. If you are here, it means you want to know more about it, and we are all about giving the right information!

What about scams?

Scams are all around us. From the person telling you, they are selling Prada original but decided to lower the price, to someone calling you on the phone (back in the days) to offer you random things. Now it’s simply more common on the internet since we’re using it for almost everything in our lives. From scam emails to scam surveys you fill in, you can finish it if you enter your credit card number. Yes, it is that easy if you don’t know how to identify scams.

People are lying for years how you can lose weight in seven days! Why do we fall for it? Because we are looking for a quick solution at the moment or we are desperate for immediate results. That is why scams work on someone, and sometimes not. If we feel we are in control or have a goal that we devised a plan for, it’s easier to ignore the voice which comes in our head and mind that it can’t do much damage, come on”, when it actually can. Our sub consciousness knows these are scams, but we choose to ignore these scam warning signs, to get instant validation or satisfaction or even hope.

How to prevent it?

As mentioned above, forex trading refers to “foreign exchange”, which means you can trade currencies of any kind from any corner of the world. Currencies are traded in pairs, which mean the price of one will dictate the other’s cost. Of course, digital currencies like Bitcoin, Ethereum and other altcoins (alternative crypto currencies) are also up on the market in a digital world. Whatever you decide you want to trade with, it’s essential to find a trusted, or better said, licensed and certified brokerage and a broker. You will need a third-party if you want to do Forex trading, and despite unpopular opinion (from people who didn’t do enough research), this is a good thing. By working with a licensed company, you will be protected, and you can completely trust them, and your broker will be the one to guide you through your trading journey, especially if you are a beginner.

Where to search?

You will start by goggling for broker reviews, and checking regulator websites to get in touch or check if the company you want to engage with is certified. Broker reviews will tell you a lot about the broker itself, their use, methods, and how trustworthy they are. Many forget that once you open a trading account, you won’t have to trade right away if you are not ready yet. You can take your time to learn by yourself and with your broker about the process, get used to how the market functions, and then devise a trading plan with the broker.

To stay consistent and on track, your goal is the most important thing. Put on paper why you want to trade in the first place and what for. It will be much easier to stay patient when the market is volatile and don’t act impulsively and then regret it.

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