By Peter Nyoni: Forex trading is one of the most misunderstood activities that every person who is looking for legitimate online business opportunities should consider. FOREX is an abbreviation of Foreign Exchange. It is legitimate business and is practiced all over the world by major financial institutions and banks.
Thanks to high speed internet, computers and smartphones; anyone can participate from home, on the road or any place where there is internet connection.
Everything can be done online. As of January 2021, it was estimated that there was more than US $ 5.3 trillion traded every day across the globe.
Many people who are eager to learn the basics and fundamentals of forex trading have found help from these forex signal telegram groups where up-to-date information and secrets are shared by industry experts.
Forex trading is done by comparing the values of the two currencies together also known as currency pairing. This can be, for example, Euro and US Dollar; Sterling Pounds (GBP) and USD or US Dollar paired with Japanese Yen (JPY).
Traders look for changes that can happen within seconds. When the price is lower, they buy, selling when prices go up.
This is just one aspect of the business but there are lots of other things and details that only experts can explain.
Many inexperienced people have benefited from expert led support groups and platforms. These experts understand and have good market analysis capabilities. This has helped many newcomers to become pros within a short space of time.
A BBC 2014 documentary Millions by Minute exposes some interesting things about the financial trade business. There is however a lot of jargon used by experts and we have done a breakdown below of terms used in forex trading:
This is a trader who has been in the market for a very short time. He usually goes in and out of the trade with just a few minutes. The biggest attraction for this type of trader is seeing the profit or loss within just a short time. The basic premise of a scalper is to be able to think fast and to be able to maintain pressure. Depending on the length of the opportunity the scalper decides to enter the opportunity or leave
- DAY TRADER
This is a trader who enters a trade on the same day and leaves the trade on the same day. Unlike a scalper, he enters the trade and waits for it within 30 minutes or an hour. The beauty of being a day trader is enough time to do your analysis. They often have a specific time to enter trades. And when the time comes they are waiting for the opportunity to create and submit their trades, they spend 30 minutes, one hour to 4 hours timeframe to do their analysis.
- SWING TRADER
These are traders who trade every day …. for daily growth there are opportunities for flow / swings in the market. In the event of a rising tide, they ascend with it . In the event of a descent they descend with them. These focus a lot on looking at a flow with a more robust nature. In some way they are very similar to the day trader who enters and exits the market within the relevant day.
- POSITION TRADER
These enter the trade for several days or a week. This is a good form for those who don’t have time to look at the chart every day.
These also take a lot of profit considering they grow in the market for a long time so take a profit for a week or a month. This approach suits people with large capital like Warren Buffet.