FOREX AND STOCK BASICS
no technical words used here .what is forex ?
in simple , forex = foreign exchange
you just going to purchase and sale the currency or exchange one country currency to the other country currency .
EG 1: very simple : consider you bought 10kg of carrot today for 2USD/kg [15kg=30USD ] you stored 15kg of carrot in refrigerator and tomorrow the carrot price suddenlly increased 1USD/kg. so now the price of 1kg=3USD . so you decide to sell 15kg to your neighbours and friends..after you sold out the 15kg carrots you got 15USD gain ,thats it .but in forex you going to purchase the PAIR of currency and sale when the prices goes high .
eg2: consider you are an American and going to buy a pen in Japan . there you cannot use USD in Japan ,so you going to use JPY to buy a pen by exchanging USD to JPY [ like this the currency exchange directly or indirectly ]
trading is always done in pairs and the most common pairs are
US Dollar and the Japanese Yen [USD/JPY] , Euro and US Dollar [EUR/USD] ,
US Dollar and Swiss franc [USD/CHF] , British Pound and US Dollar (GBP/USD)
US Dollar and Swiss franc [USD/CHF] , British Pound and US Dollar (GBP/USD)
most commolly traded currenccies ,
US Dollar [USD], Japanese Yen [JPY], Euro [EUR], British Pound [GBP]
Canadian Dollar [CAD], Australian Dollar [AUD], Swiss Franc [CHF]
Canadian Dollar [CAD], Australian Dollar [AUD], Swiss Franc [CHF]
keep in mind our slogan is "BUY LOW AND SELL HIGH"
lets we move to STOCK MARKET
same as forex but in different maner . you are a partner where you buy a share .
you can buy a share of your like company in STOCK MARKET.
In simple Words, a share or stock is a document issued by a company, which entitles its holder to be one of the owners of the company.
EG 1 : consider you buy a share of 100USD in an popular car company and now you are the partner of the popular car company .and wait till the share price increases greater than 100USD to get some profit .
the share price increases or decreases depends upon the popular car company growth ,which you decided to invest your money by buy an share.
difference between forex and stock in simple
forex - related with only currency exchange .[ depends upon the country currency growth ]
stock - invest money in a company [ products , jwell , petroleum , food , clothes ...whatever it may be]
keep in mind our slogan is "BUY LOW AND SELL HIGH"
important tips
to get started you should have 4 basic qualities to get success here.
1. selecting the right brokerage or currency pairs [ where you going to buy a share or currency pairs ]
becasuse there are lot of scam brokerage sites . so be careful when selecting your brokerage.
2. before you going to buy something you must make some analysis [ without analysing the prediction will not give you the success , sometimes you may lose everything, so please do some analysis before you start ]
3.money manageent - it plays very important role [ you should have a strong plan where you going to invest ? and how much you going to invest ? ]
4.donnot take any decision when you are overjoyed or sad [ just control your emotion and be calm . and it has been proved that many people make wrong decision when his/her country won the cricket or footbal match or even lost ] may be funny for you but its TRUE .
keep in mind our slogan is "BUY LOW AND SELL HIGH"
practice makes a man perfect
this concept is enough for newbies, so do not read anymore at anywhere about forex or stocks .
just open an PRACTICE account in some sites and keep on getting knowledge by doing something there .
why i say like this ?
by reading you can understand only 10 % of what you read
but doing in practical you can understood 70% and in less time too .
practice account will not take anything from you its free .
here is the links [ only for practice and not for real ]
stock , best practice account https://fxtrade.oanda.com/your_account/fxtrade/register/individual/beforeyoubegin
forex ,best practice account
http://www.etoro.com/webtrader/start/join as many practice account and get knowledge practically ....
try to understand each option .
to get more practise account click the link below
to get more practise account click the link below
keep in mind our slogan is "BUY LOW AND SELL HIGH"
