Table of Contents
By: Charley Warady
Any individual that has even opened a demo account knows the future of speculative trading lies in Forex web trading. Years ago, it was all done in trading pits with brokers and traders screaming at each other with arms flailing. That all changed for the good and for the bad with the advent of computers and computer trading.
Currencies are king
It didn't take long, relatively speaking, for the historical markets to give birth to new markets. The creation of Forex web trading was a natural outcome of the interest in the fluctuation rate of foreign currencies. Currencies have been traded in the Chicago market and New York market for many years, but the concept of trading the relationship between currency pairs became the basis of Forex web trading.
It was a natural for the market to house itself on the Internet. It opened up a doorway for anyone remotely interested in the science of foreign currency speculation or even looking for the thrill of trading. The economies of countries worldwide were fluctuating and Forex web trading turned upset into opportunity.
Ease of use
The ease and accessibility of Forex web trading, however, became a double edged sword. Anyone with a computer in his home could become a Forex trader in an hour or so. This led to get-rich-quick schemers and shady brokers. It was only natural. So, the Forex market quickly received a bad reputation and its integrity suffered. However, like any market, the serious and legitimate Forex brokers and signal providers gained momentum and the scammers are slowly getting drowned out.
The Forex trader has to be careful, though; and it's not just because of the Forex broker. Because of the ease of use involved in Forex web trading, it's easy to fall into the mindset that it's not a real business. It is, in fact, a real business and needs to be treated as such. Just like any other business, the Forex trader must have a plan and stick to it. Discipline is a necessity. Just because the market is right there all the time doesn't mean you have to trade it all the time. Make a schedule and stick to it.
Just as you would go to the office; arrive at a certain time and leave at a certain time. It doesn't increase your odds of making money by staying at the computer screen longer. That old law of diminishing returns comes into play.
The technical and fundamental
It's not gambling; or at least it shouldn't be if it's done right. Forex web trading has the same market intricacies as any other speculative market. There are charts for the technical Forex trader and news flashes for the fundamental trader.
A continuing education is necessary to stay afloat in the Forex web trading community. Those that remain stagnant usually get lost in the shuffle. For those that have traded Forex successfully over a considerable span of time will tell you that half the game is homework. There will always be a percentage of uncertainty, but the key is to lessen that percentage as much as possible.
