Sunday, March 29, 2015

The Truth about Profitable Trading forex

Actually trading forex already there since many many years! maybe since Merchant visit another continent! so, whether they like it or not, if merchant want to get resource or things, they need to trader their currency with local currency! maybe at that time currency still simple as paper from their kingdom or just piece of gold or silver!(not so sure though) but my point is,  currency trading already been there for many many years!
just FYI, there is a few participant in forex industry that trade forex all the time .eg Government(Central Bank), Bank, corporate, Investment company and retail trade! if we pay attention on this 3 participant, Government, Banks and Corporate you will see and realize that these guys, are not trying to make profit! weird ehh ;) simple question, why not ? Government Trade forex because they want to make their currency more stable, or sometime to make their currency weak, just like shinzo abe trying to do!(A weak yen is no panacea but Shinzo Abe needs it all the same) in nutshell government not trade forex to make profit!

Bank also trade forex!but is not because they want to make some profit! and also they can't or not allowed the reason because its not their money :) but if you heard bank trade forex simple because their costumer need to exchange currency! from local to foreign or vice versa!  for corporate such export import company! they need to trade currency in order to hedge! the idea is to avoid the risk of currency volatility! cause if that happen, their profit will decrease!

 Profitable Trading forex

from the statement above now you know ;) that the biggest participant in forex industry actually not making any profit or at least they not trade currency to make some money! but for investment company such as hedge fund and individual retail trader, they want to make some cash! I assume at this point , you have a lot of question! I bet you do ;) almost forget another FYI, do you know that most forex brokerage are bucket shop type ;) it mean your money will not flow to the real market! unless you use real ecn brokerage! ok back to topic!

If government and bank trade currency and not make profit, so how individual make profit from forex ? ;) good question! actually when government trade forex they get benefit! i.e economy more stable!  for a bank, even they not allowed to trade forex(they have no investment license), but still they get difference price! they can increase and lower buy and sell currency price! and also charge a fee from costumer that exchange currency! ;) from here I assume that you have different perspective how to make profit from trading forex, right ?

in other words, you can make profit from forex if you have another goals! just like government or bank that charge a fee! beside than that! it would be hard! unless you can find a way to predict market precisely where market want to move! ;) i.e impossible! in other words (again) you must be really really god to tame the beast! i.e Forex Market!

Moral story of this article are very simple! Forex  is a high risk Investment! If you want to make profit, you need to find another benefit! Or at least, You need to find best trading strategy that can make consistent profit!
Ditulis oleh: Forex Trader ForexAbiz Updated at : 7:27 AM

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