How To Trade Currencies

Learn to Trade Forex

How to trade currencies is not difficult once you grasp the concept of trading on margins. Margin trading magnifies both potential gains and losses - applying levearge to your capital. Most forex brokers provide leveraged accounts of 100 to 1 and some as high as 500 to 1. At 100 to 1 leverage by putting down $10,000 of trading capital you are able to trade $1million of currencies. Unfortunately novice traders often do not appreciate that while the leverage is what can help them make $1,000 or more a day using just $10,000 capital there is the two-edged sword that can quickly decimate a trading account of the unweary. To learn How to Trade Currencies it is essential that you not only do some book learning (or these days online learning - but also to get some trading experience before you start risking your own money. Therefore first open a practice account and once you have mastered the basic only then switch to a real account with a small sum of money. Once you gain more skill you can add more funds  through which it is possible to control huge quantities of currency. This is known as leverage. When you ask a Forex broker how to trade currencies you will be required to open an account with some minimum amount - generally around $200 or with some it can be as low as $25. The Forex broker firm will then permit you to use leverage of 50, 100 or more times your deposited amount to trade currencies. However it is prudent not to start trading currencies using more than 100 to 1 leverage to avoid too rapid a decline in your capital. Realistically when you start learning how to trade currencies you will lose money for an initial period. This is to be expected - similar to learning how to drive a motor car. Do not attempt to drive at a hundred miles an hour until you have mastered all the controls - especially the brake. The same applies in learning how to trade  currencies. How to trade currencies also depends on your knowledge of the world economy. This is a step most novice forex traders omit in their trading education - and it impairs their judgement and the development of professional trading skills.  While the basics of trading are simple - you buy or sell (exchange) one currency for another - expecting the market to turn in such a way that the currency you bought appreciates in value against the one that you sold is not that certain. It is in fact not easy to determine without an understanding of both "fundamental" factors and "technical analysis" of forex markets. A thorough grounding in the correct principles of how to trade currencies should include learning how to trade the news. Changes in government policy, interest rates, trade figures, global events and even the weather can have a dramatic impact on economies around the world and in turn on currency markets. There are some special techniques of trading the news which are not complicated and which can eliminate for you to even listen to the news announcements. All that is need is for you to place two opposite orders in the market to be actioned depending on which way the news impacts the market. Without first studying how to trade currencies it is too early for you yet to start trading the news but it is definitely something for you to look at in you forex trading education. To start with get a full grounding in the basics of how to trade currencies by learning forex thoroughly. Once you have the elements of how to trade currencies you might then look at getting some highly useful forex trading software such as TradeMiner - to make your currency trading easier and more profitable. Click the link to view the video and bookmark it. Complete the optin box on that site if you would like FREE lessons on how to trade currencies. trading education  learning forex trading the news trade the news. TradeMiner how to trade currencies