I've been trying to find information articles or books that helps someone intereseted in this market learn its terminology and how to trade it but I only seem to find trading sites or articles for people who already understand the basics. I know almost nothing about this market but have been told I should look into investing in Forex. Does anyone have any advice or know of any articles or books that will teach me the basics of Forex trading?
Here are a few pre-emptive hints off the top of my head: A) Buying a currency with higher rates while shorting a currency with lower rates is not an edge. B) Leverage is not an edge. C) A + B certainly do not make an edge. D) On martingale systems: markets can and will remain irrational far longer than you can stay solvent. D) No free or guaranteed money in this game. E) Trade globex.
here's a good list of books from forex.com i am not affiliated with them http://www.forex.com/forex_bookstore.html
Who told you to try FX and what are the reasons for that advice? Both are important in my view. The quality, or lack thereof, of the advice correlates to the result, so it is a good idea to know the quality of the advisor and the reason(s) behind the advice.
FX seems to specifically seek out the novice trader, offering "zero commissions" and tiny trading lots; they really assume you've never traded before (and perhaps for good reason). At the office I visited, the manager tried to show me a "trick" that he uses for rangebound currencies: go long one lot of EUR/USD and short one lot EUR/USD simultaneously; that way, "you can take advantage of profitable moves either way." I virtually dragged my friend out of the office after that.
And if you are profitable, it's for reasons not listed above, e.g., you are an excellent market timer.
I was actually told to trade forex from another member here when I asked about tips for trading the stck market. Although I didn't get much help in that request. I diddn't even know that forex was commission free. Ot sounds interesting since is open 24 hours 6 days a week which would really be good since I have school.
Forex doesn't have commissions, but the brokers take more than a regular commission in purposeful slippage when you make your order. Forex is not for beginners or those who are willing to spend less than 16 hours a day working on it, or those who are afraid to lose their entire account multiple times before becoming profitable, or those who can't get up at 2 AM to trade because that's when some of the best moves are. That kind of thing. It's very "hot" right now, but I think the average joe can make more money trading stocks. Forex is a whole other world, where you're going up against sharks and you're a guppy. I know guys who've been trading 10 years and haven't made a profit yet. But all this is just my opinion.