Currency Trading as Hobby: Know the Basics
Introduction
Foreign Exchange Market also referred as “FOREX” is the biggest financial market in the world with a daily turnover of more than 1 trillion US dollars. It is bigger then european online casino market. Unlike other financial markets, FOREX does not have any single location because the dealing is not done on a trading floor. Rather the business is carried over computer links or telephone between dealers in different other countries across diverse trading centres. Currency trading is a twenty-four market and the business commences everyday in Sydney and the trading moves to Tokyo, London and finally to New York. Dollar is the centre piece in FOREX trading and is considered as “base currency” for all quotes.
Currency Trading: A Fun Filled Hobby
With increasing level of knowledge among investors, many people are actively participating in FOREX market. It is not a distant dream for anyone and you can use currency trading as a hobby. There are many benefits of FOREX trading and some of them are discussed below:
(1) Brokers don’t ask for high commission but a nominal fee depending upon bid.
(2) No possibility of scam or fraud because no middle person enters the scene.
(3) Engage yourself in the trading whenever you feel like irrespective of time.
(4) Get to know about people sharing same interest of currency trading.
(5) Newcomers can start bidding with a low amount, say 25 dollars.
Important FOREX Trading Tips
Currency trading can be a great hobby where you not only get to know about the stock market but earn decent money also. In order to enjoy long term trading success without losses, it is important that you follow a set of guidelines that puts you on a winning edge over others. Few important currency trading tips are discussed below:
(1) Avoid Using FX Robots: Stay aloof from FX robots because they are a total waste of time and it would not make you wealthy and you get to lose a lot of money in the stock market. These robots are cheap and are totally useless.
(2) Smart Work is Required: In order to join the five percent of elite traders, you need to do smart work rather than hard work. Learn the basics and the simple system of trading and you will be rewarded in the end. There is no need to work overtime.
(3) Be Interdependent: You can invest in currency trading with your own cash or take the help of any broker who will trade for you. If the broker is doing business on your behalf, then talk with him constantly and discuss the strategy.
(4) Using Low Leverage: Brokers are likely to give you a leverage of 200:1. But when you use this amount, it is likely that you will lose. You should begin with 10:1 because it will keep risks under control and help you in earning without witnessing failure.
(5) Be Disciplined: If you want to make currency trading as a hobby, you should be extremely disciplined..
Starting currency trading as a hobby can has its share of rewards and failures. You should also be aware of the risks involved so that you do not incur losses. It is important that you should do good research and follow the existing trading trends before you invest money in shares.
