What is forex?
If you want to start day trading forex, you must first figure out what it is. Forex is the largest investment platform in the world. In it, over $5 trillion worth of currency is traded every day. It involves the buying of one currency and simultaneous selling another.
Suppose you had reason to believe that the US dollar (USD) was in a position to become more valuable than the Japanese yen (JPY). Then, you would make a USDJPY trade. Using a broker, you would buy USD while simultaneously selling JPY.
You can trade forex 24 hours a day, 5 days a week from 2 pm Sunday (Pacific time) to 2 pm Friday.
Beginning my journey into day trading forex
I am in the process of learning about day trading forex. I learned decades ago that one of the best ways to learn something is to have to teach it. So, in this blog I will be teaching people what I am learning about forex. Later on I expect to be telling you about my successes and failures. (Failure is part of the forex trading process. You may get most of your trades right, but you will never get all of them right.)
Right now (January 8, 2021) I am a real newbie. I haven’t even started my forex course yet. I’ll be starting it later today.
There are lots of forex courses available on the Internet. The one I’ll be taking has around 400,000 students and has been translated into 20 different languages. Each of the teachers cannot hold their job unless at least 70% of their trades are successful. Combine those 3 points along with the fact that I’ve met several people who are making money with this course and none who are losing. That’s why I feel so confident about course that I’m jumping into it with great enthusiasm.
Factors that affect the forex market
There are lots of factors that affect the directions of the currency markets. Among other things, they include:
- Interest rates,
- Inflation rates,
- Amount of foreign trade,
- Balance of foreign trade,
- Amount of public debt and
- Strength of a country’s economic performance.
One factor that we must pay attention to is the future of digital currencies. Many countries’ central banks (including the Bank of Canada) have their own digital currencies. Pay close attention to digital currencies such as Bitcoin.
No matter what you invest in, there is a risk. This blog is simply logging what I am doing & learning. I do not guarantee that you will be successful. I take no responsibility for your success or failure.
What you will see below are things I’m adding weeks after I posted my initial blog post above.
This blog will be mainly about HFX, High Frequency Forex. My candles will usually be 5 minutes long and most trades will be 3 minutes long. I’ll have to make the trade within the first 2 minutes of the candle. So, I’ll be doing lots of fast thinking.
At this time (February 11), I think that I’ll be a conservative trader and will not take a trade unless most of the indicators are positive.
Index of blog posts
Demo Account, #9
Fibonacci sequences, #11
Lost Bitcoin, #7
Go to second blog post.