Important: I have seen people in different forums who advertise their eBooks or some other thing where they offer to tell the secret of making lot of money via doing forex business. Please Note: forex business is one of the riskiest businesses of all. If someone tells you that forex business is a one way road trip to become a rich man and there are only profits and no losses: then I am afraid to tell you that this person is lying.
People lose lot of money in this business. You can earn money but you can also lose lot of it.
Also, this business is not free to start: that is, you will be required to invest money in order to start this business. In case you are only interested in free opportunities, then you can go here to find more information:
What Is Forex Business?
Forex business involves selling or buying of different currencies. People invest money in banks, stock market etc, forex business is just like that.
People can buy foreign currencies online these days. There are online forex trading softwares that we can use to trade currencies. This business can also be done offline. We can find money exchange companies/shops from where we can buy/sell currency. However, trading online is preferred way of doing this business.
Different currencies’ rate go up and down. We need to do some market analysis to determine which currency is best to invest our money in. In forex business, we sell one currency to buy another one.
What factors influence currency rates?
Supply and demand
There are many factors that can result a change in currency rates.
How to do forex business?
First of all, you will have to get an online forex account. You can get one here: eToro – Online Forex Account
Now, before you trade any currencies remember that many new comers in this business lose lot of money and they learn this business the hard way. You should not trade until you have done fair bit of research about the currency you want to buy.
One political statement can have a big impact on a particular currency. You have to be aware of political events: look at the economy and other things that can influence currency rates.
You can either buy or sell a currency. If you buy a currency, then you will get profit if this currency rate increases.
We all know that political scenarios and economic situations can change very quickly. One bankruptcy announcement from a major company can have a big influence on the currency market.
You can never be sure that the trade you are making will give you profits at the end.
Have I done any forex business myself?
Yes, I have done this business a little bit myself. But I did not traded currencies online: instead, I have done the trades at foreign exchange companies.
What have I traded?
I had few thousand Pounds which I traded with Pakistani Rupees when the rate was:
1 British Pound = 118 Pakistani Rupees
After few days, I saw the Pound rate down at about Rs.113. At this level, I thought maybe I should invest the money back in Pounds. There was no guarantee that the rate will go up again: The rate could go further down.
So I decided to do this investment and was willing to take this risk.
After few weeks, the rate of pound reached approximately Rs.118 again. That is when I again traded pounds with Pak rupees.
I am currently monitoring the market and I think I will invest my money in the currency which will be weaker against US dollar. And when/if that currency gets stronger against US Dollar, I will trade that currency to get some profit.
But it is very much possible that the currency I buy will get further weaker against US Dollar instead of getting stronger. And if I will need my money for some reason, then I will have to trade it and will lose money instead of gaining any profit.
It is possible to make money with forex business if you are willing to properly understand all the factors involved in this business and also understand that this work is extremely risky.
Do not invest money until you have done proper and thorough market analysis.
I have seen some online companies that offer a free forex practice account. You can join such program in order to see if you really can do this business.
You will be able to trade currencies via online platform, 24 hours a day and 5 days a week.