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Forex Secrets Article:

Minimize Your Forex Trading Risk Through Forex Training
By Margaret Dorsey
There are many ways to fail in trading and investments. Unforeseen market fluctuations, lack of experience, unpredictable political changes (as well as a faulty internet connection) can all reek havoc with a first time trader. But once equipped with proper training you can begin to minimize this risk, and turn potential pitfalls into gains at every turn.

Youll soon see the benefits, too. Apart from the fact that the market never sleeps, youll also be able to cash in on both rising and falling markets. It sounds like a fantasy, but since currencies trade in pairs, a good investor can make as much by selling a particular currency as buying it. When you buy (go long) you are in fact be able to sell (go short) the other half of the pair. One value increases as the other goes down. It isnt quite as simple or straightforward as it sounds, but thats where training in comes in. It will help you to spot the right currency to go long with and the right one to go short, anticipatory of the changes and entry/exit time.

Once fully trained, youll also benefit from the famously low transaction cost which boasts for its investors. There is generally no brokerage commission cost with this kind of set-up. There is the added bonus that is not directly correlated to the stock market it deals purely with individual currencies and how they contrast. The foreign currency market has little to do with the
stock market, and as long as the outlook is positive, a currency change can always be converted into successful buying or selling for the trader in question, regardless how the market appears to a casual observer.

Forex training will introduce you to the foundation of this market - its international conglomerate of traders and dealers. They consist mainly of multination banks in touch directly with their dealers and holders through the internet and telephone. As such, there are no physical environments to act as the market floor, which usually tie any trading post (such as the New York Stock Exchange and its relationship with the equity markets) to the problems faced by non-digital, real-time organisations. succeeds precisely because of its 24/7 status, and has come to be known as an OTC (over-the-counter) market, much like NASDAQ. As an investor, you will soon discover the tactical benefits of this approach.

As a trader, you will also be struck by the fact that no one can corner or alienate certain aspects of the foreign exchange market. Because the business is so large, with so many participating members, there is very little chance of an individual even a group of companies holding sway over one portion of the marketplace for any sustained period. This is truly a traders market, and once you begin your training, youll get used to the countless benefits and wonder why you didnt take the plunge before!

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