Getting Started In Currency Trading by Rudy Teseo
Itís Easier Than You Think
Do you think currency trading is too complicated
or only for millionaires? Itís not.
Not too long ago, the commodity market was the place to go
to make big money. But sometimes stock market participants
who looked into commodity trading had traumatic
experiences when they did, because the difference between the
two markets was like night and day. A trader who understood
the mechanics of trading AAPL, for instance, could trade any
other stock on the exchange. In the stock market, prices are quoted in dollars and trades are made in increments of pennies.
However, that isnít the case in commodities; traders find out
in a hurry that each commodity is unique. They learn that they
must choose three or four commodities and become experts in
those few, as it is impossible to trade the entire market.
Fortunately, there is a market where money can be made
using all the tools and experience used in the stock market.
The foreign exchange market (also known as forex, or just
FX) is where currencies are traded. Today, this market is the most liquid and largest financial
market in the world. Upward of
$4 trillion a day are traded. The
market is open five days a week,
24 hours a day from 5pm Eastern
time Sunday to 5pm Eastern time
Friday. Not only that, itís got
a reputation: when traders get
together and the subject of forex
comes up, beginners and oldtimers
agree that currency trading isnít
for them, whether because of its
complexity or the possibility of
This apprehension is probably
keeping a lot of you from dipping
your toe into the forex waters.
Without trying, youíll never know
how well you could have done.
Take a look at the two charts in
Figure 1. Can you tell which one
is the one-minute chart of IBM
and which one is the one-minute
chart of the EUR/USD (euro/US
dollar)? Does this give you some
assurance that these two trading
arenas are not that far apart? Does
this mean you can continue to
use the same technical analysis
indicators that you have been
using for stock trading?