Wadau wa forex, hebu naombeni mnisaidie kunielewesha maana ya hizi terminologies kwa jicho la Forex trading:
- Spreads
- Lot
- Leverage
- Pips
-Kaveli-
Pip: - A pip is the smallest
price move that a given
exchange rate makes based on market convention. Since most major currency pairs are priced to four decimal places, the smallest change is that of the last decimal point; for most pairs, this is the equivalent of 1/100 of 1%, or one
basis point. For example, the smallest move the
USD/CAD currency pair usually makes is $0.0001, or one basis point.
Lot: - represents the standardized quantity of a
financial instrument as set out by an exchange or similar regulatory body. a lot may represent the
minimum quantity of that security that may be traded. Read more:
Lot
Leverage: - Leverage is the
investment strategy of using borrowed money: specifically, the use of various
financial instruments or
borrowed capital to increase the potential return of an investment.
Spreads: - difference between bid and ask price, buy and sell price.
Before you start to trade you need to understand basic English, decent laptop better to have two laptops and basic understanding of financial terms.
Trade only with serious company but if you haven't got money, that is not possible. You will end up with bucket shop companies. It is difficult to trade on mobile phones, to see all the graphs and information clearly.
Bucket shops tricks:- easy to deposit money, difficult to withdraw, they can trade against you, they can manipulate the feed into the charts you see and what you see on your screen, hunt your Stop Loss, widening spreads for no apparent reasons, slippage favourable to them and give you false price fluctuations to suit their companies. This is why it essential to have another independent reliable feed. Go for ECN or DMA if you can.
Mkuu 95% of new small retail traders lose their money, i am not discouraging you or anybody, go ahead, go for it.
Lets us know how things pan out after 6 months. Meanwhile learn from others here:
www.trade2win.com/boards/general-trading-chat/223566-warren-buffet-suceeded-95-traders-fail-6.html.
Forex Factory - I've figured out why so many people lose money in Forex.
Bucket shops: -
FX Scams Revealed: the Bucket Shop Mindset and Unfair Order Execution | Finance Magnates
Also you need another income before you start to trade, don't trade if you have not got a job or another income ,don't borrow money to do this. Don't put more than 10% of your income in this, It will drive you crazy.
Countries, Big sophisticated traders and big corporation they have sophisticated strategies, tactics, like using options (Insurance put and call options) to cover their position and minimizes their losses, if they lose.
Hapa watu wengi wanaojiamini wanaweka their trade lives: -
www.etoro.com. So you can see how they perform everyday for yourself live.
Books read these books Marcel: -
Marcel Link : -
Amazon product ASIN 0071381562
Market Wizards and New Market Wizards by Jack D. Schwager. Here he interview all top traders who made millions / billions give you their considered perspectives.
Amazon product ASIN 0887306675
Reminiscences of stock Operator by Edwin Lefevre: -
Amazon product ASIN 1946963062
Goodluck all with your trading.