Why Trade Forex When You Could Make Money Elsewhere?
That is a good question. There are many people however in this day and age that are turning to other methods than the status quo to make money, in particular investors who once left their money in equities but now find that there are other avenues in which they can earn better returns. One of those markets is the Forex capital markets and Forex day trading.
Forex has been around for many years but it has only been recent that retail traders, people like you and me and your friends, can sit in the comfort of their homes and make money. I am talking about real traders, not people that buy a software program to do the trading for them. Most of these traders lose money and exit the currency trading game early.
I like to talk about "real" people who become traders because it is not something someone is born with anymore than someone is born with the skill to hit a baseball. It is a skill that needs to be acquired however, I believe that with the right direction and time on the side of the person interested in trading that anyone with effort and concentration can become a true Forex trader.
One of the best ways to learn to trade in the Forex market is to start with an understanding of momentum. Most people have seen movies or real pictures trading in the "pits" of Wall Street or some other exchange. Obviously there are times when trading in the pit is slow and not much is going on. However, things start to change when something happens economically, geographically or otherwise, that affects where people have their money invested. Forex like any market is people and money. When people see that they can make money, they move and when people see they can lose money, the move. One is greed, the other is fear.
Regardless, momentum is created and you can see it as traders buy and sell in the pit. The same thing happens on a computer screen without all the yelling, screaming, pushing and shoving. Seeing, feeling, predicting momentum in the Forex market can be learned and when it is traders who understand it begin to make money.
That is the crucial aspect of trading Forex making money. People who want to become traders can do just that simply by understanding concepts like momentum.
Paul Dean is the owner of You Learn Forex and has worked extensively with RSI, the Relative Strength Index developing new insights with trader/programmer, David Moser.
He has written three eBooks: RSI Fundamentals: Beginning to Advanced, RSI Trading Examples Vol. 1, and RSI PRO:The Core Principles.
In addition, he has developed a successful indicator called the RSI Paint Indicator that was adapted from a standard RSI to alert traders all 4 RSI signals.
http://www.youlearnforex.com/. Visit the site to download a free eBook on the RSI PRO Forex Trading System and the 4 RSI Trading Signals. Videos are available on YouTube.
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