Intro: Forex Trading is the Best Business

Before you go thru the lessons, make sure you are decided that this is the kind of business that you want to go into for a long time. Forex trading I think is the best business in the world. It is a business where you have no customers to please, no employees to train, no inventories to manage and no offices to rent. Best of all, you may remain anonymous and be anywhere. I think its one of those businesses that you don’t need to retire, all you need is a functional brain and you can do forex trading and still make a living even in your old age, while traveling the world. On a yacht… On the Caribbean… You get the point.

But take note, all things comes with a price. Learning forex trading for me had cost me my full time job and I almost got bankrupt. I literally traded my full time job to learn to trade forex. I believe in the saying that fortune rewards the bold. You don’t have to do this and quit your job now. Your job might be a job that gives you a sense of fullfilment and you don’t want to quit. But keep in mind that in everything you do and every skill that you must learn, you must put in a lot of hours learning. Some say that people acquire a skill after 10,000 hours of consistent practice. And at that time, my job has been dragging me down.

Warning for the Experts

This is not a book for the experts. You might find some of the lessons insulting. Its not my intention to insult you. This book is for the complete beginners in the field. You may learn a thing or two about how I trade and beginners will learn a lot from the lessons to get them started to reading other books about the subject.

Forex Market

As you might have noticed, this course is different from other sources. I want this course to be as close to how I experienced forex. To give you a brief explanation, forex trading happens in the market. Where is this market? Well, its kind of like the internet, you don’t see it, but we can connect to it thru different networks using our computers. The forex market is the same. It is a network of banks where they can exchange currency. For what reason you say? Well, let’s say a large business wants to start a company in another country, they have to exchange their dollars to the local currency so that people can actually accept it.

To make the story short, forex brokers now give you the ability to exchange currency like those businesses and banks. They connect to the market for you using your computer. And they get a small profit by the amount of “spread” in the transaction. If these terms doesn’t sound understandable to you, don’t worry. You’ll eventually get it.

Assignment

This is a free course but you also need to do your part in order to learn. I want you to read some more articles about forex and ask whatever it is that is bugging you in your head about forex.

  1. Head over to babypips.com and read whatever interest you.
  2. Go to a money changer in your local community and pay close attention to the exchange rates. Then compare them to the actual exchange rates you see on http://finance.yahoo.com/currency-converter/
    Do they match? The slight difference in prices is what makes the money changer and brokers profitable. And that’s what you call a spread.

PREV: Why I Wrote This Book

NEXT: Lesson 1: Personal Finance and Planning

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  • avitales

    Is it possible to do forex as part-time business?

  • ForexPhil

    Of course! Part-time, full-time, quarter-time, anytime. :)

  • avitales

    Thank you ForexPhil. By the way,how much do you pay for a broker?

  • ForexPhil

    Forex brokers don’t earn the same way like stock brokers do. Forex brokers earn by adding a spread. Not a % of transaction like a stock broker.

    In forex, the spread depends on the currency pair you’re trading. EURUSD for example is the cheapest since most brokers only charge 1 pip as a spread. That’s it. While most exotic pairs would range from 40 – 200 pips.

  • pips2015

    Hi! Do you have a list of legit FOREX brokers here in the Philippines?