In case you don’t know what currency trading is, it is also known as Forex or Foreign Exchange trading.
It is the place where different currencies are exchanged continuously by millions of people all around the world.
Real Life Example
If you have ever travelled to another country, you probably had to find a currency exchange booth at the airport and exchange the money you had in your wallet (if you’re a dude) or purse (if you’re a lady) into the currency of the country you are visiting.
You go up to the counter and notice a screen that reads all the different exchange rates. You find the “Japanese Yen” and say to yourself, “Well if I’m getting 100 Yen back for every US dollar and I have 5 dollars on me, I’M RICH!” Soon after that moment you will realize when you go to buy a coffee that half of your money is gone.
When you do this, you have essentially played a part in the foreign exchange market. You have sold your US dollars for Japanese Yen.
You have exchanged your currency for another. When you fly back home from Tokyo you will notice that the exchange rates have changed and your 100 Japanese Yen is now worth less than what it was worth when you got there.
The Global Forex Market
These changes in exchange rates are what allows you to make money trading in the forex markets.
This is the largest and most liquid financial market in the world. With an average trading value of an average 5.4 trillion dollars per day, the currency markets definitely outperform any other market.
Forex Vs Stock Market
Yes the stock market makes a lot of noise and is probably what you think of the minute you hear the word “market,” but compared to the foreign exchange market it would look like a one person kayak next to a 1000 foot yacht.
Of course the major reason why people get into the forex market is to make money, and this is a perfectly legitimate motivation.
We live in a world where money, even if it “can’t buy everything”, would certainly make life a lot more enjoyable.
Why Trade Forex?
There are some people that trade in the forex market because they see it as a form of gambling and betting on the winning number and doing it for fun.
But there are others who trade forex just for the personal satisfaction of having a trading system work for them and coming out with the results they aim for. We are always satisfied when we make the right choice and come home the winner.
The common factor for why people trade forex is quite simple, these people are getting whatever it is they want whether it’s money, enjoyment, satisfaction, or all three of these reasons.
