Best of the Week
Most Popular
1. Gold Final Warning: Here Are the Stunning Implications of Plunging Gold Price - P_Radomski_CFA
2.Fed Balance Sheet QE4EVER - Stock Market Trend Forecast Analysis - Nadeem_Walayat
3.UK House Prices, Immigration, and Population Growth Mega Trend Forecast - Part1 - Nadeem_Walayat
4.Gold and Silver Precious Metals Pot Pourri - Rambus_Chartology
5.The Exponential Stocks Bull Market - Nadeem_Walayat
6.Yield Curve Inversion and the Stock Market 2019 - Nadeem_Walayat
7.America's 30 Blocks of Holes - James_Quinn
8.US Presidential Cycle and Stock Market Trend 2019 - Nadeem_Walayat
9.Dear Stocks Bull Market: Happy 10 Year Anniversary! - Troy_Bombardia
10.Britain's Demographic Time Bomb Has Gone Off! - Nadeem_Walayat
Last 7 days
Stock Market Pause Should Extend - 21st April 19
Why Gold Has Been the Second Best Asset Class for the Last 20 Years - 21st April 19
Could Taxing the Rich Solve Income Inequality? - 21st April 19
Stock Market Euphoria Stunts Gold - 20th April 19
Is Political Partisanship Killing America? - 20th April 19
Trump - They Were All Lying - 20th April 19
The Global Economy Looks Disturbingly Like Japan Before Its “Lost Decade” - 19th April 19
Growing Bird of Paradise Strelitzia Plants, Pruning and Flower Guide Over 4 Years - 19th April 19
S&P 500’s Downward Reversal or Just Profit-Taking Action? - 18th April 19
US Stock Markets Setting Up For Increased Volatility - 18th April 19
Intel Corporation (INTC) Bullish Structure Favors More Upside - 18th April 19
Low New Zealand Inflation Rate Increases Chance of a Rate Cut - 18th April 19
Online Grocery Shopping Will Go Mainstream as Soon as This Year - 17th April 19
America Dancing On The Crumbling Precipice - 17th April 19
Watch The Financial Sector For The Next Stock Market Topping Pattern - 17th April 19
How Central Bank Gold Buying is Undermining the US Dollar - 17th April 19
Income-Generating Business - 17th April 19
INSOMNIA 64 Birmingham NEC Car Parking Info - 17th April 19
Trump May Regret His Fed Takeover Attempt - 16th April 19
Downside Risk in Gold & Gold Stocks - 16th April 19
Stock Market Melt-Up or Roll Over?…A Look At Two Scenarios - 16th April 19
Is the Stock Market Making a Head and Shoulders Topping Pattern? - 16th April 19
Will Powell’s Dovish Turn Support Gold? - 15th April 19
If History Is Any Indication, Stocks Should Rally Until the Fall of 2020 - 15th April 19
Stocks Get Closer to Last Year’s Record High - 15th April 19
Oil Price May Be Setup For A Move Back to $50 - 15th April 19
Stock Market Ready For A Pause! - 15th April 19
Shopping for Bargain Souvenirs in Fethiye Tuesday Market - Turkey Holidays 2019 - 15th April 19
From US-Sino Talks to New Trade Wars, Weakening Global Economic Prospects - 14th April 19
Stock Market Indexes Race For The New All-Time High - 14th April 19
Why Gold Price Will “Just Explode… in the Blink of an Eye” - 14th April 19

Market Oracle FREE Newsletter

Top 10 AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

Advice to make it as a professional in the forex market

Currencies / Forex Trading Nov 23, 2018 - 12:04 PM GMT

By: Submissions

Currencies

The forex market is perhaps one of the most misunderstood markets out there. It’s seen only ever in its simplest form by many holidaymakers and travellers, while for newbie retail investors, it’s sometimes thought of as either too volatile or too complicated. For technical analysts, the heavy focus that many forex publications place on fundamental analysis points such as interest rate rises can seem too much.


However, there’s plenty about the foreign exchange market that people don’t actually know: the British market accounts for 41% of the global foreign exchange trading volume, for example, where there are many refreshing and unusual pairs to trade that don’t involve the ever-dominant US dollar. If you’re planning to enter the foreign exchange trading world as a professional, there’ll be no room for misunderstandings such as these. This article will share some top pieces of advice on how to go about crafting a career as foreign exchange market professional.

Read and learn

As with any new investment field, there’s a lot to learn about the forex field before you can become an expert. For some newbies, the fact that foreign exchange trades occur in pairs is a shock – and that’s before the complexities of price chart trend identification and other difficult concepts are brought into the equation! The web is your friend here: reading material is available on Fxexplained.co.uk, and it’s a good idea to look out for information on the psychology of trading and risk management in particular.

Look for jobs

Some who go into the world of foreign exchange decide to join the ranks of a bank or an investment institution, and work to satisfy the foreign exchange needs of the firm’s clients rather than their own. These client needs are diverse – and you’ll be required to be sympathetic to their needs. A corporate client may have made a profit through a subsidiary in a foreign country, for example, and they require it to be turned back into pounds. Or perhaps a client is about to execute a risky business move in another country, and they want to “hedge” against the outcome by buying up some foreign currencies.

There are lots of potential routes into getting a job at an institution like this. A particularly common one is to secure a degree from a good university, and preferably one in a subject that displays some financial aptitude, such as economics or accountancy. Historically, some people have become successful forex traders at major institutions without top-end degree educations, though for someone determined to climb the professional ladder, it makes sense to go this way.

Go it alone?

Being a professional foreign exchange trader, of course, doesn’t mean that you have to join the payroll of an institution. An alternative is to “go it alone”, and to set yourself up as a forex trader. If you do go it alone, one distinct advantage that you’ll have is that you’ll be able to access all sorts of forex-related products that might take too long to access if you go through an institution. You can, for example, set yourself up with a contracts for difference, or CFD, account: these derivatives are often much less unwieldy than traditional foreign exchange buying processes, and they’re traded entirely online. Another advantage of going it alone is that you can choose to either trade your own cash speculatively, or to do it on behalf of clients – or a mixture.

Know the market

The last thing to consider before plunging head first into the foreign exchange market is that it is a tough market in terms of working conditions. During the week, the forex market trades all day long: globally, it operates several different sessions that run throughout a 24-hour period, such as the Sydney session, the New York session and the London session. While you won’t be required to work 24 hours a day, of course, you will need to have an awareness of what’s gone on in other sessions that day – and even if you are based in one place, you might have to work antisocial hours to cover what’s going on in another.

Entering the forex market as a professional, then, clearly isn’t for the faint-hearted. Whether you choose to apply for a job at an institutional investment firm or you prefer to go it alone, there are lots of entry points and pathways to success. Your main task for now, though, is to do your research and make sure that you’re as up to speed on this market as possible.

By Lee

© 2018 Copyright Lee - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules