The Forex is much simpler than the stock market, and easier to track. There are only six major currency pairs: Euro, British Pound, Swissy, Australian Dollar, Canadian Dollar, and the Yen. With the six major currencies, you will never have liquidity problems, and the spreads are good to reasonable (Currencies are always traded in pairs – EUR/USD, USD/CAD, etc.). And liquidity, well, the stock market trades several hundred million dollars a day, but the Forex trades several trillion dollars a day. Some invividual or institution with a few billion dollars is not going to come in and push this market.

You can certainly trade the Chinese Yuan against the Algerian dinar, but the spread is going to be huge, the currency manipulated, and it might take a long time to move. And the liquidity will be horrible, so you can’t use market orders and you won’t get your price.

Like most of you, I thought you had to know a lot about the fundamentals of each of the foreign countries, and there are so many countries. But I’ve just reduced this list down to six majors, and the activities of these six are well known. Like the U.S., they each publish a CPI, and GDP, and Unemployment Rates, and are regularly updating the markets on the biggest influence: interest rates. I’ve always prided myself as a pure Technical Analyst. Fundamentals are for geeks and goobers; only price matters. But if you’re going to trade the Forex, you better pay attention to these reports.

The currencies trend better than any other investment vehicle, and much better than the constant whipsaws in the stock market., so many systems work here that will not work elsewhere. If you can trade the stock market, you can trade the Forex.

With any leveraged position, you must use stops. Good money management is essential here. The gamblers will blow out twice as fast here. More leverage is always more risky, but you do not have to use maximum leverage. You can trade one contract with only $1,000 in a standard account for maximum leverage, or you can trade one contract for every $10,000 you have in the account, or one for every $100,00 you have in the account, and do away with the leverage altogether.

I got so frustrated with the stock market going a different direction almost every day, until you anticipated it, then it changed. It was turning us all into Day Traders. With the Forex, the trend really is your friend.

Like any trading occupation, it requires good data and good charting and analysis software, and you need a good news source on Forex. The only platform that offers all of these, that I’m aware of, is called PremiereTrade. They also offer good training and instruction and message boards that works well for seeing it in action and getting your questions answered.

Check it out.

If you have less than $1,000,000.00 USD I suggest you to stay away from FOREX.

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These trial trade programs do not always properly simulate the market. I would not trust them.

Unfortunately too many people are just trying to make a quick buck with Forex trading. You must remember that world markets are very volatile at this moment in time with regards to the N.Korean nuclear situation. Do you understand that if you were reading an online news bulletin and the headline read "North Korean nuclear situation", it is far less alarming than "North Korean Nuclear Crisis"…stuff like this could determine Forex changes.