The Foreign Currency Exchange (or Forex, Spot market, or Cash Market) is a group of over 4500 world banks that are connected electronically.
It is different from the Stock Market because there is no centralized trading place. The Stock market trades $100 billion daily, the US Treasury Bond deals with $300 billion daily, but the Forex deals with $3 TRILLION daily! Because of this, it is much easier to get in and out of a trade.
The Forex open Sunday evening at 7pm EDT and closes Friday evening at 4PM EDT.
There are 3 sessions of trading:
- Asia 7 PM EDT to 6 AM EDT
- Europe 2 AM EDT to 11 AM EDT
- United States 8 AM EDT to 5 PM EDT
To trade the Forex, you need to open an account with a Forex broker, fund the account, then place a trade. This is easy to do if you have Internet access. You will also need charting software so that you can analyze the market.
90% of traders fail, and only 10% of traders succeed. The reason why so many fail, is because they fail to get a good education. They fail to secure a good mentor. I have found some excellent mentors at Market Traders Institute.
They have kept things simple and logical. They have always been available for me to ask questions. When I set up a trade, I can go into a live chat, and ask their opinion. They do live analysis of the market 5 times a day to help me see where the currencies are going and how I should be trading. They have always been patient with me.
I also have access to other traders that are learning in the MTI chatroom. I have made many friends in the chatroom and we help each other.