Forex trading or currency trading has been around for over 30 years but until recently it was almost exclusively in the hands of banks and other financial institutions with large investment funds. With the exponential growth of internet, nowadays ordinary people can do forex trading by using their home computers although the financial institutions are still the major players in currency trading market. When you know the fact that around US $4 trillion changes hands every single day on the currency trading markets you will realize that only a tiny part of this belongs to ordinary people like you and me.
Currency exchange is a global market and because of the diverse time zones around the globe you can trade almost any time. Sydney, Australia is the first forex market to open every day, and by the end of the business day in New York the Sydney market is open again for the next day’s trading. Foreign exchange market closes only on weekends. Thus for 5 days a week this is truly a 24 hour market where trillions of dollars are exchanged.
You are not restricted to selling in your own country’s currency so if your country’s economy is in a very volatile state you can switch to trading other foreign currencies that are more stable. While it is true that a volatile condition with large fluctuations can give you big earnings in a short time, it is exceedingly risky to get involved in a currency that is experiencing a crisis especially if you are new to currency trading.
Nowadays brokers are going all out to attract the new home investors who wish to do currency trading without large investments where you can get started with just a few hundred dollars. These forex brokers will provide you with software that allows you to make trades on your account, and real time forex market info including charts to show you the trend of movement of the various currency pairs.
It is beyond doubt that with such a large amount money changing hands every day, currency exchange is a high liquidity market. This means that your investment will not be tied up for the long term as it might be if you bought certain kinds of stocks.
Apart from some funds to invest, the main possessions that you need to get started with currency trading are good money managing skills, self discipline, a profitable forex trading system to follow and perhaps a good forex robot to apply your system for you. When you have these things in place, currency trading can be fun and highly profitable.