Foreign exchange has been a hot topic lately with the weakness of the US Dollar and has always been an area rife with scams and rip-off artists (even the SEC warns about it on their website for forex transactions). Trading in foreign currencies works off the same principles are trading anything else, you want to buy low and sell high. Scammers would like you to believe FOREX is magic, that there are sure-fire trading systems that work 100% of the time, but Forex isn’t magic and there are no sure-fire trading systems… it’s just another way to invest.
So for years, the Foreign exchange market has been a secret and somewhat of a mystery to many traders, including myself. If you thought about investing, you mostly looked to the stock market or to bonds as places to invest. If you were like me, you knew about people trading in currency on the foreign exchange market but you never knew much more about it.
While I’m not advocating anyone jump into Forex investing today, I think there’s value in understanding how it works, even if you never plan on investing in it. To help demystify the Forex market, I thought I’d write a Foundation article about the basics of FOREX.
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