Forex Introduction

living in forex stock market

 

Forex in our lifes

I would like to tell you about my initial experience in the Forex market. My initiation or, rather, my baptism in Forex was like that of any other without previous knowledge, that is, a disaster. The first account I opened was with a broker I found on the internet, in those typical ads that even promise to make you rich in a matter of months. Reacting like any other person who is enthusiastic about this type of ads and, on a trial basis, I opened an account for the minimum amount, which was $100.00. What was the result after a few months? I lost the $100, either for operations chosen by me or on the advice of this broker's sales agents. After I lost them, guess what I did. You won't believe it, I put in $100 more, why? It was bad luck, I thought and wanted to get my money back.



⇾But I do not regret it because in exchange for that loss I understood that 1. Getting into any kind of investment without prior knowledge of what is being bought or negotiated is the same as betting your money on the roulette of a casino, you can win quite luckily, but in the end you end up losing what you won, the money you started with and even your house and your pet if you are not careful. 2. Investing in Forex requires strategy, and I needed to learn it if I wanted to succeed.

Which brings me to the purpose of this blog. I am guided by the desire to share this same knowledge for those interested in improving their analysis or even for those who want to start from the basics. So this blog is intended for anyone with or without previous knowledge of the subject.
Initially, I will focus the content of this blog on macroeconomic issues seen from a practical point of view and how they affect the Forex market, or in other words that makes a currency appreciate or rise in value or depreciate or lose value against other currencies. For this I will use real life examples such as meetings of the US Federal Reserve (FED) and other central banks around the world and economic indicators such as inflation and unemployment. Drawing conclusions or practical lessons at the end.

I will also comment on current geopolitical events such as wars, elections, referendums like the one in England, if they are relevant to any currency. In special cases, I will add graphs to better understand the impact of these events. Finally, I will use abbreviations for currencies, as seen on a currency trading platform; for example, the US dollar will be abbreviated to USD.



Forex? is the abbreviation of Foreign Exchange Market or FX translated to Foreign Exchange Market. What is traded? Currencies from any country are traded as long as there are sellers or buyers willing to trade. It should be noted that some currencies have larger size or trading volume than others, or in other words, larger. liquidity (or in other words, most times you will find traders willing to buy or sell you a currency), this is because, the more developed a country, the more traders will be willing to buy or sell a coin.

To give an example, let's take the U.S. currency which is the dollar, henceforth USD.  Globally, this is the most traded, representing about 75% of all daily transactions. Between some reasons that explain this, we have that it is the currency of the biggest economy of the world, in turn, it is the reserve currency used worldwide, by the great majority of central banks. Most goods in the world have prices in USD like oil and metals like copper, silver and gold. The United States has the world's largest financial markets and lÄ«quidos such as the New York Stock Exchange, among others.On the other hand, let's compare the USD against the Mexican peso or MXN

Although Mexico's economy is not poor, it is an economy in the process of development, or what is known as a "social" economy. emerging economy, in other words, it is not the same size as the U.S. economy as it is growing. In addition, MXN is not used in the majority of goods transactions in the world.

Therefore, from this, we can deduce that the USD along with the currency of other developed countries such as Australia (AUD), New Zealand (NZD), Japan (JPY), Euro Zone (EUR), United Kingdom (GBP), Switzerland (CHF), Canada (CAD), are the currencies most traded by traders daily. In the case of the Euro Zone it is easy to see this, as it is an important trading partner of several countries around the world, while Canada is the main oil exporter to Japan. With respect to other countries this will be the subject of another delivery.