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About Forex
The Forex market has quickly become the world's largest financial market, with an estimate daily turnover of $3.2 trillion. It is
a market that has great appeal to a financial trader because of its volume which guarantees liquidity. High liquidity means
that a trader can trade whatever currencies he feels like at all times, since there will always be someone to buy and sell any
currency he wants. Another outstanding feature of the forex market is that it is active 24 hours a day and is closed only on
the weekends. This means that unlike the stock market for example, traders in the forex market don't need to wait for a bell
to ring, but can make trading decisions around the clock.
Enter the internet into the equation. Now the forex market is literally at your fingertips. Most brokers offer online trading
facilities which enable you to trade simply by clicking a button, instead of the traditional phone call. The internet has really
revolutionized the industry, making the retail section of the market more dominant than ever.
About eToro
eToro is a forex trading platform developed to cater to the emerging retail segment of the forex market. With its simple style
and exciting trade visualizations, eToro is the perfect platform for a novice trader to get his first forex trading experience.
With its great array of professional forex trading and analysis tools, eToro is also the perfect platform for experts in the field
who want to trade comfortably and reliably. eToro has developed a truly intuitive interface that lets traders concentrate on
trading instead of messing around with bulky and overcomplicated software.
It's important to mention that eToro also offers an educational experience, so novices can gain knowledge of the forex
market and eventually become pros if they're so inclined. eToro offers forex trading guides, forums and video tutorials to
facilitate their traders' progress. eToro also offers an unlimited practice mode where both beginner and seasoned traders can
sharpen their skills and test their strategies with real market rates.
Overall eToro have successfully designed a software that caters to a very wide segment of the forex trading public. eToro is
bound to remain a leader in the forex industry for a long time to come.
eToro's features:
Visual representation of trades: Monitor your trades with ease by watching creative visualizations of your trading activity.
Practice mode: Test your skills and strategies by trading with live rates, without risking a cent.
Trading Challenges: Compete against fellow traders for cash prizes - with no entry fees.
Trade: Enjoy immediate and accurate execution with all your trades.
Low Spreads: Save a fortune on eToros super low spreads - as low as 2 pips.
Trade: Enjoy real time execution with all your trades.
eToro's Pro Insight: Get a look at what currency pairs eToro's top 100 traders are trading at the moment, and use the
inside info to your advantage!
Download eToro for FREE and join a fast growing forex community.
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Table of Contents
CHAPTER 1: WHAT THE STOCK MARKET IS ALL ABOUT ...................4
CHAPTER 2: STOCK MARKET TRENDS ......................................... 12
CHAPTER 3: AN INTRODUCTION TO FOREX ................................. 16
CHAPTER 4: UNDERSTANDING CURRENCY CONVERSION............... 21
CHAPTER 5: UNDERSTANDING STATISTICS................................. 26
CHAPTER 6: FOREX VOLATILITY AND MARKET EXPECTATION ......... 30
CHAPTER 7: ASPECTS OF THE TRADE ......................................... 34
CHAPTER 8: RISK MANAGEMENT................................................ 38
CHAPTER 9: BUZZ WORDS ........................................................ 43
CHAPTER 10: EXPERT TRADING OPTIONS ................................... 48
CHAPTER 11: OTHER TRADING OPTIONS .................................... 51
CHAPTER 12: IN REVIEW .......................................................... 55
CHAPTER 13: ONE FINAL OPTION............................................... 60
are broken into minute pieces of the whole, but you are still
considered an investor in that company or product until you
sell your shares.
Think of it as paying for a tank of gas in the car that your
parents bought for you to drive. You may have even bought
the oil filter that has been put on the car, and you may feel
that this investment makes you part owner. However, when
you look at the overall cost of the car, you have really
contributed very little to that amount. However, as long as
you continue to invest in the gas for the car and take care of
of all traders and means that your stock will become more
valuable.
As the value of your securities increases, so does your net
worth. When the price of the stock in your possession
reaches a high point, it is time to sell, making a profit on
your original investment. Ideally, you will always sell your
holdings for a reasonably higher price than the purchase
amount and should never sell when the current value of the
stock is below your initial purchase price. It is important to
make sure that you do not purposely take a net loss because
there are plenty of occasions when you could be forced to
take a loss.
For example, if you purchase shares of a company at twenty
dollars each, you should never sell them for eighteen dollars
apiece. If possible, you want to hold off until they are each
worth perhaps forty dollars, in essence doubling your
money. Of course, this is just an example, and not all
stocks will ever double in value, but the illustration is
meaningful.
There are other, more complex ways to invest in the stock
market. However, much like learning to ride a bicycle, you
do not want to make your first attempt without training
wheels.
Making Decisions In The Beginning
get a feel for how the stock market works prior to investing
large sums of money and risking a big financial loss. These
particular stocks cost literally pennies or small dollar
amounts and typically only fluctuate fractions of a cent on
any given day, making them extremely safe for those just
starting out.
Once you get the hang of it and can better judge the market
trends, you can comfortably move on to more complicated
and adventurous areas of the market. It is like removing
the training wheels from your bicycle or entering the
freeway the first time at an hour of the day when there is no
traffic to contend with.
Be aware that, just like you may fall off your bike once or
twice and end up with some scrapes and bruises, you may
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