Just now I was browsing around on the internet, trying to figure out what my next submission should be on the blog. I wanted something informative and something that helps beginners, I thought that some quotes from legendary investor Warren Buffett would actually be more useful than some nooby explanation of some indicators. (of course, those nooby explanations will arrive - sooner or later)
You can check the quotes here.
Saturday, October 15, 2011
Sunday, October 9, 2011
Trading platforms
The question arises: "How do you trade anyway?"
With the help of trading platforms. A lot of brokerages offer these platforms for free download with a demo, so that you can try them and see if you like it or not. There are a lot of different kind of platforms, they all differ in appearance, and in functions.
Of course, most of the trading platforms do have the same basic stuff a trader might require, however, there are some platforms that offer an immense database of different indicators and other options.
We are noobs, however, and we are quite intimidated by the endless options.
I'll share some reviews about trading platforms that ( in my opinion ) are easy to use, and quite straightforward.
With the help of trading platforms. A lot of brokerages offer these platforms for free download with a demo, so that you can try them and see if you like it or not. There are a lot of different kind of platforms, they all differ in appearance, and in functions.
Of course, most of the trading platforms do have the same basic stuff a trader might require, however, there are some platforms that offer an immense database of different indicators and other options.
We are noobs, however, and we are quite intimidated by the endless options.
I'll share some reviews about trading platforms that ( in my opinion ) are easy to use, and quite straightforward.
Wednesday, October 5, 2011
Investor Entertainment: Wall Street (Movie)
I've decided to add some entertainment to the endless flood of information, and recommend a great movie: Wall Street.
The story is about a young Charlie Sheen who wants to live the life of the rich and the powerful, and is ready to do anything to get there. He meets Gordon Gekko, played by Michael Douglas, a powerful business mogul, who decides to take the boy under his wings, and teach him the tricks of the trade.
It was made in 1987, but it's still very entertaining, and a must-see if you're thinking about investing and trying forex. Not because it's full of facts, but because you'll feel awesome when you sit down to trade.
Well, enjoy!
The story is about a young Charlie Sheen who wants to live the life of the rich and the powerful, and is ready to do anything to get there. He meets Gordon Gekko, played by Michael Douglas, a powerful business mogul, who decides to take the boy under his wings, and teach him the tricks of the trade.
It was made in 1987, but it's still very entertaining, and a must-see if you're thinking about investing and trying forex. Not because it's full of facts, but because you'll feel awesome when you sit down to trade.
Well, enjoy!
Thursday, September 29, 2011
Forex introduction: Leverage
You must be saying "WAIT A SECOND! The exchange rates don't jump around that much!" when you read my last post. That is true. So, how do you make money out of this, when they only move around a tiny bit?
Leverage. This is the two bladed sword that make big profits and even bigger losses reality.
The idea is that the more units you have of that currency, the more the changes in the exchange rates infuence your profits and your losses.
Whenever you trade in forex, you usually buy 10,000 units of that particular currency. 1 lot equals 10,000 units, so when you buy for example 5 lots, you are talking about 50,000 units.
So, buying/selling 1 lot means you basically trade with 10,000$. That's a lot, how can you afford that? Here comes the leverage:
Your broker basically lends you this money. You pay 100$ to your broker, with a leverage of 1:100. That means, you have 10,000$ available to trade with, even though you only 'risk' 100$.
The reason the broker can do this is because currencies are pretty stable, and the money you buy and sell never gets 'worthless'. It's still money.
Basically, whenever you sign up for an account at a broker, always check what leverage options they have and how you can use this to your advantage.
Leverage. This is the two bladed sword that make big profits and even bigger losses reality.
The idea is that the more units you have of that currency, the more the changes in the exchange rates infuence your profits and your losses.
Whenever you trade in forex, you usually buy 10,000 units of that particular currency. 1 lot equals 10,000 units, so when you buy for example 5 lots, you are talking about 50,000 units.
So, buying/selling 1 lot means you basically trade with 10,000$. That's a lot, how can you afford that? Here comes the leverage:
Your broker basically lends you this money. You pay 100$ to your broker, with a leverage of 1:100. That means, you have 10,000$ available to trade with, even though you only 'risk' 100$.
The reason the broker can do this is because currencies are pretty stable, and the money you buy and sell never gets 'worthless'. It's still money.
Basically, whenever you sign up for an account at a broker, always check what leverage options they have and how you can use this to your advantage.
Tuesday, September 27, 2011
Introduction to forex
Alright, so I wrote a pretty long introduction which was about the blog itself, but what is the BLOG about? Forex, and investments.
Today, I'll talk about forex.
Well, what's forex? The word itself stands for foreign exchange. It's basically a market for currencies.
You buy and sell money, which kinda sounds stupid, but it's not.
As every commodity, money itself has value as well, which differs from other commodities (currencies). As we know, the values of currencies always change, we hear it all the time in the news, etcetera. Did you know you can actually get rich off this?
Let's pretend that the currently you can get 2 Canadian dollars for 1 US dollar.
So, you buy 2 canadian dollars for 1 US dollar, you have 2 CAD on you. The exchange rate suddenly drops to 1 canadian dollars for 1 US dollars, for whatever reason. ( I'll probably write a post about why the value of a currency can rise/drop ).
Wait a second.. You have 2 canadian dollars from your previous exchange, so you just exchange it back for 2 US dollars. You just got a profit of 1 US dollar. Awesome, huh?
That's basically what forex is about. The trading of currencies. Of course, it's not THAT simple, that's why I've made a blog to explain everything to the tiniest detail, so that we, forexnoobs, can later be called forexpros. Well, I hope this'll happen someday!
Today, I'll talk about forex.
Well, what's forex? The word itself stands for foreign exchange. It's basically a market for currencies.
You buy and sell money, which kinda sounds stupid, but it's not.
As every commodity, money itself has value as well, which differs from other commodities (currencies). As we know, the values of currencies always change, we hear it all the time in the news, etcetera. Did you know you can actually get rich off this?
Let's pretend that the currently you can get 2 Canadian dollars for 1 US dollar.
So, you buy 2 canadian dollars for 1 US dollar, you have 2 CAD on you. The exchange rate suddenly drops to 1 canadian dollars for 1 US dollars, for whatever reason. ( I'll probably write a post about why the value of a currency can rise/drop ).
Wait a second.. You have 2 canadian dollars from your previous exchange, so you just exchange it back for 2 US dollars. You just got a profit of 1 US dollar. Awesome, huh?
That's basically what forex is about. The trading of currencies. Of course, it's not THAT simple, that's why I've made a blog to explain everything to the tiniest detail, so that we, forexnoobs, can later be called forexpros. Well, I hope this'll happen someday!
Monday, September 26, 2011
Introduction
Hello everyone!
Welcome to forexnoob, an idea for a personal journal/blog of sorts, where I dive into the fairly intimidating world of forex and investments.
My main reason to start this blog wasn't to educate others, but rather to educate myself. As the title suggests, I'm a complete noob at anything forex and investments, and this blog is some sort of 'challenge' for me. I will force myself to learn a bit each day about the world of investments, and then write what I've learned down in my 'journal', which is basically, the blog.
If you decide to join me, and follow my progress, you'll see that reading my blog will surely pay off in the future. All you have to do is check my blog once or twice a day, and see what I've discovered on the internet. You will not have to research stuff for hours, you can just join me and I will try to explain everything I've learned as simple and 'noob' friendly as possible, because I'm a noob myself.
A lot of sites on the net are really intimidating, to be honest. If you're like me, and just wanted to know a bit more about the world of finance, but then are intimidated by professional sites which use big words that a 'casual' user might not understand on the first visit, then this blog should help you with that.
If you want to be more educated in the world of finance, but do not have the time nor energy to research stuff for hours on the net, you can just check my blog, read some posts, and feel accomplished.
Of course, if you wish to actively educate yourself in forex and investments, you can use the blog as a jumpstart. Read something interesting on the blog that caught your attention, but you want to know more? You can always google things you wish to know more about, and this way you can use your time more effectively.
Keep in mind, that as the title suggests, I am not a professional advisor or whatever. I'm a forexnoob, I am a beginner, who has the enthusiasm to spend hours researching some topics on the internet, and then share the results on this blog.
I hope you'll find the blog useful ( I sure will! )
Welcome to forexnoob, an idea for a personal journal/blog of sorts, where I dive into the fairly intimidating world of forex and investments.
My main reason to start this blog wasn't to educate others, but rather to educate myself. As the title suggests, I'm a complete noob at anything forex and investments, and this blog is some sort of 'challenge' for me. I will force myself to learn a bit each day about the world of investments, and then write what I've learned down in my 'journal', which is basically, the blog.
If you decide to join me, and follow my progress, you'll see that reading my blog will surely pay off in the future. All you have to do is check my blog once or twice a day, and see what I've discovered on the internet. You will not have to research stuff for hours, you can just join me and I will try to explain everything I've learned as simple and 'noob' friendly as possible, because I'm a noob myself.
A lot of sites on the net are really intimidating, to be honest. If you're like me, and just wanted to know a bit more about the world of finance, but then are intimidated by professional sites which use big words that a 'casual' user might not understand on the first visit, then this blog should help you with that.
If you want to be more educated in the world of finance, but do not have the time nor energy to research stuff for hours on the net, you can just check my blog, read some posts, and feel accomplished.
Of course, if you wish to actively educate yourself in forex and investments, you can use the blog as a jumpstart. Read something interesting on the blog that caught your attention, but you want to know more? You can always google things you wish to know more about, and this way you can use your time more effectively.
Keep in mind, that as the title suggests, I am not a professional advisor or whatever. I'm a forexnoob, I am a beginner, who has the enthusiasm to spend hours researching some topics on the internet, and then share the results on this blog.
I hope you'll find the blog useful ( I sure will! )
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