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What is a Forex Trader?
The forex market is increasing in popularity over the years. It is the most liquid market in the world, and it is open 24/7. These are some of the main reasons why so many people are interested in giving a shot to being forex traders. However many have a very limited idea of what it entails, and this is what we shall be discussing in more detail hereunder.
Forex trading involves transactions involving currencies. The currencies of countries from all over the world are traded, so that one would be buying one currency while it has a particular value over another currency. The exchange rate is measured in pips.
The trader will be interested in determining the best price at which to carry out a trade. This will be based on the current market conditions. Hence a forex trader will be aiming for a profit while doing these trades.
This is easier said than done as there are so many factors which have an impact on price movements in the forex market. Hence the trader will need to analyse these and make wise decisions.
A forex trader will also need to manage his portfolio. This requires great attention, planning, setting risk levels, market timing and much more.
So as you can see becoming a forex trader is not that simple. You need to devote time to it, and be willing to work hard. You need strong emotional control so as not to let emotions affect your trading decisions. A background in finance can help. Trading management, money management and risk management are also key.
Forex trading involves transactions involving currencies. The currencies of countries from all over the world are traded, so that one would be buying one currency while it has a particular value over another currency. The exchange rate is measured in pips.
The trader will be interested in determining the best price at which to carry out a trade. This will be based on the current market conditions. Hence a forex trader will be aiming for a profit while doing these trades.
This is easier said than done as there are so many factors which have an impact on price movements in the forex market. Hence the trader will need to analyse these and make wise decisions.
A forex trader will also need to manage his portfolio. This requires great attention, planning, setting risk levels, market timing and much more.
So as you can see becoming a forex trader is not that simple. You need to devote time to it, and be willing to work hard. You need strong emotional control so as not to let emotions affect your trading decisions. A background in finance can help. Trading management, money management and risk management are also key.