Companies in the Eurozone have not been doing very well; they have been reporting bad results. On top of this we have a reduction in the growth forecasts for Europe, and the stock market falls. This is low spread brokers why we are seeing a decline in the European stock indexes which ended the trading session today in the red.
But I am not discouraging you from trading in forex. I lost a lot of money in forex and now I know how to protect myself. I have found main killer of forex trading is leverage. Leverage is very attractive if you are very experienced trader. Many forex brokers allow you to control a trading position up to $500 just for investing $1. This is called leverage of 500: 1.
In Forex trading, a lot of money can be made.and can be lost. Learning Forex is a learning skill set you should not take lightly. There are many Forex books that can really help you learn.
When a currency pair (trading one currency for another) moves up or down a "pip" you will generally make $1 for each pip. A pip is 1/100 of a penny, but when you multiply it by say $10,000 traded then a pip is equal to $1 of profit. Now if you were to trade two mini lots (like you could do if you had $200 or more in your trading account) you would then make $2 for each pip, etc.
If you are new to the scene of trading forex, then it would be a good option to acquire the help of a forex broker. A broker can serve as your guide and also as your bridge to actual trading. If you are new to trading then the expertise as well as the networks provided by your broker become essential. He can guide you step by step on how to start trading. In the end, it is you who will choose the trader for you. He should not just be there to offer brokering services but also to provide useful information and trading tools that you will need along the way.
Suppose a broker charges 2/10's of a pip (about $2.50 - $3 per 100,000 unit trade) in exchange for access to a superior proprietary software platform. In that case it may be worth paying the small commission for this additional service.
The general understanding of traders is that the increased spread model without a side commission is better than paying a side commission with a raw spread. From the visual perspective a trade without a side commission may look better than seeing the commission next to each trade, however traders should take into account few other considerations which will show that the general understand is not quite right.
The last and possibly most important step for a new trader is to find a proven trading system. By using a system, you can simply follow indicators which tell you when to place your trades and when to close them to make a profit. There are many different signal services, Forex EAs & software programs out there but let's be honest, you want the one that is the most accurate and most profitable.
Write something about yourself. No need to be fancy, just an overview.