02-13-2023: EUR/USD

What is the Foreign-Exchange Market?

Forex, or Foreign Exchange, is the global market for buying and selling currencies. Forex is the world’s largest and most liquid financial market, with an average daily trading volume of over $5 trillion. It provides a way for countries to buy and sell their currency against each other, making it easier to do business around the world. Through forex, countries can also purchase commodities and other investments, such as stocks and bonds. The forex market operates 24 hours a day, five days a week, so it offers traders a wide range of opportunities for making a profit.

In this weeks blog post I go over the last two days of the EURUSD chart (02-06-2013 – 02-10-2023). Watch the video above and realize the earning potential of the past few trades made on Thursday and Friday. 

So… why would anyone decide to trade Forex over crypto, options, stocks or anything else? Well, for starters Crypto is very risky. With all of the controversy around FTX, Sam Bankman-Fried and volatile crypto stocks, a lot of experts and retail traders are staying away from it.  When it comes to options, a lot of retail traders need at least $25,000 to day trade with a margin account. Lastly, when it comes to stocks a lot of traders just don’t have the capital to trade with. 

So they end up trading Forex because the minimum amount to trade Forex with is very low. You can trade forex with almost anything.  Now even though the trading minimum is very low, that doesn’t mean that the risk is very low. Trading forex, just like trading stocks, options, futures or crypto, does require SKILL. So you will have to take the time to analyze the market and learn HOW to trade so that you can be profitable. Otherwise, you’ll end up losing the little you have. 

I would suggest to trade on a demo account first, then small amounts / lot sizes, then with time and consistency you can trade a higher lot size with more capital.