We have covered quite a few aspects of ForEx trading as part of Study Forex Blog. We have talked about some basic requirements for future ForEx traders, we have talked about the financial market itself, we have talked about the advantages of ForEx trading over other financial markets and much, much more. We have, therefore, decided that one of the things this blogsite misses is a quick FAQ segment where we will be answering some quick-fire questions about ForEx and where we will be giving only the shortest answers possible.
Question #1: What makes Forex trading so popular?
Answer #1: Well, first of all, it is relatively new market and there is always popularity to be spent on new things. However, this is not everything, the novelty can only get you this far. Forex trading is also much more approachable as it is much less biased towards older and experienced traders. It is also much more democratic as you require less initial assets to start trading in Forex. In addition to this, it is a rapidly changing market which means that there is room for quick success and quick earnings.
Question #2: How much money should I invest in Forex?
Answer #2: First of all, this is not a question that can be answered just like that. You need to understand that there are many different factors that would play to answering this question. For one, we would have to know how much money you have to spare on ForEx in case everything goes worse than you thought. We would also need to know how much experience you have in financial markets and how good your broker is. The only advice we could give you like this, flying blind, is to tell you that you should never invest the money you need for everyday life on ForEx trading. It is quite a volatile market and quite a risky one that can soon hurt your financial situation a lot.
Question #3: How do I choose a ForEx broker?
Answer #3: This is a complex process that can make or break you as a ForEx trader and you need to ensure that you are doing your best when choosing a ForEx broker. They need to be proficient at what they do and have plenty of experience in this field. In addition to this, they need to be quick on their feet and also able to make split-second decisions. Of course, you can never be sure of this before you hire them, but you can check their reputation and their track record. It goes without saying that you will want someone you can talk to and someone that you do not find annoying every time they open their mouth. Finally, if they are hard to reach and if they do not return your calls or other forms of contact, you might be better off with someone else.