There are indeed a lot of investments where you can put your money. Stocks, cryptocurrencies, VUL, mutual funds, and now, forex. What is forex? How do you invest in it? Is it the same with stocks? Are you buying something when you invest in forex?
I know you have many questions about forex. Let’s break them down and explain only the essentials once for your initial learning. Forex can also be a place for your money. You can invest in forex and like other investments, you can make money from it. You can double or triple your money with the right strategies.
So, what are the things you need to know about forex?
Forex can be too overwhelming
For newbies, forex can be too overwhelming. The foreign exchange market is open 24 hours, 5 days a week. It’s close on weekends. With it operating 24 hours a day, you can’t possibly trade in those hours all the time. You don’t have to be awake 24 hours just to monitor the market, although there are investors who do that. What I am saying here is that forex is a huge opportunity for winnings and losses since it’s open longer than the stock market. However, you may be overwhelmed by the number of trades you can make in a day.
Catch me in my live training events! (quick plug)
The heart of why I do these seminars is I want to build a generation of Filipinos with the right foundation in stock investing. I want to bring smart investing to every Filipino around the world! If you would like to know more about how you could time the market check out the training below.
Forex is super volatile
If you think crypto is already volatile, wait until you invest in forex. Unlike stocks or mutual funds, forex is super volatile. You can earn as much as $1,000 in an hour and lost x5 in 30 minutes. That’s how fast money comes and goes in forex. So, if you don’t have a solid strategy that you can use, you are only putting your money on fire with forex. I personally don’t recommend this to newbies. If you want to practice trading, do it with stocks then go back to forex when you are an expert already.
You can sell and buy
The concept of buying and selling in forex is different from stocks but it’s similar to crypto. You sell when you think the price of a pair will go down. You buy if you think it will go up. That’s how it works. You can bet on two different directions so you can profit from both. Even if forex is crashing and you are selling, you can still take home a massive amount of cash in sell positions.
About the pairs
It may be complicated at first. As a newbie, you wouldn’t know what it means when you say USDJPY. Is it a combination of two foreign exchanges? Actually, the pairs have meaning. USDJPY means the price of a dollar against the Japanese yen. When you bet in this pair, you are either saying that the price of USD will be higher (buy) or lower (sell) than JPY. There are also other pairs like GBPUSD, EURJPY, CADNZD, and so on. In forex, there are a total of 24 pairs that you can trade.
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