When I was learning to trade foreign currency I was being trained not just to understand the movements of the currencies back and forth between countries but also learning about the human condition and psyche. I have long enjoyed the benefits of a superior financial education than most of the people around me, and having this knowledge has always allowed me to have a deeper understanding of how individual human decision making impacts economics and global finance.

Forex Trading Plays on Inequities in the Market
It wasn’t until I learned to trade foreign currency that I began to understand how people with real money take advantage of the basic needs and desires of individuals and use forex trading to take advantage of the opportunities in the market. It used to take large amounts of capital and small teams of traders to take advantage of the movement of money around the world but now many automated trading programs have sprung up allowing individuals with smaller amounts of capital to play and succeed in the market where only the big fish once played.

Now I Trade Forex Too
Now instead of watching all the highly capitalized players in the market play – I get to play and make my money too. With the cool robot programs I use (linked to my broker), I don’t have the stress of constantly monitoring results either.

Is The Stress of a Margin Account Too Much For You?
Many people who try to learn to trade foreign currency end up quitting before they ever make their first trade. The number one reason for this (other than pure lack of capital reasons) is the stress and high risk of using a margin account. While the leverage of a forex margin account is awesome (try upwards of 100:1 leverage), the downside is that losses can mount quickly and in many cases are not limited to the amount of initial investment. Fortunately one alternative to direct forex trading is the advent of binary options. Binary options offer exposure to the high returns of forex trading without the unlimited downside. A binary options trade offers the high yield but losses are limited to the amount of the investment – an important protection for traders afraid of the exposure to margin calls. Better still trades typically are commission and spread free, greatly reducing the amount of capital required to effectively trade. In many cases as little as $100 is required to open an account and place a trade. Try that with a forex trading account, no?

Anyway, I hope you’ve learned a little about how to trade foreign currency and are committing yourself to learn more or to give other forms of investing a try. The fastest way to make money is trading online. Other people are doing it, no reason you can’t.

More on Foreign Currency Trading:
Learn to Trade Foreign Currency – Examples of Forex Trading Opportunities to Exploit
Learn to Trade Options – The Basic Put and Call Options Explained
Learn to Trade Binary Options – The Fastest Way to Make Big Money in the Market

Prior Post: Forex Trading Systems That Work 24/7 Good Times and Bad Times