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What is the main difference between the Foreign Exchange Market and the Stock Market? Find out here on my Forex trading software review blog post.

Basically the foreign exchange market is also known as the FX market, and the forex market. Trading that takes place between two counties with different currencies is the basis for the fx market and the background of the trading in this market. The forex market is over thirty years old, established in the early 1970’s. The forex market is one that is not based on any one business or investing in any one business, but the trading and selling of currencies.

The main difference between the stock market and the forex market is the vast trading that occurs on the forex market. There is millions and millions that are traded daily on the forex market, almost two trillion dollars is traded daily. The amount is much higher than the money traded on the daily stock market of any country. The forex numbers are astronomical!

What is traded, bought and sold on the forex market is something that can easily be liquidated. This means it can be turned back to cash real fast, or often times it is actually going to be cash. From one currency to another, the availability of cash in the forex market is something that can happen real fast for any investor from any country.

The forex market is global. The stock market is something that takes place only within a country. The stock market is based on businesses and products that are within a country, and the forex market takes that a step further to include any country. This is another main differnce between the two.

The stock market has set business hours. Generally, this is going to follow the business day, and will be closed on banking holidays and weekends. The forex market is one that is open generally twenty four hours a day because the vast number of countries that are involved in forex trading, buying and selling are located in so many different times zones. As one market is opening, another countries market is closing. This is a advantage for forex traders with the flexibility to trade twenty fours hours a day.

The stock market in any country is going to be based on only that countries currency, say for example the Japanese yen, and the Japanese stock market, or the United States stock market and the dollar. However, in the forex market, you are involved with many types of countries, and many types of currencies. You will find references to a variety of currencies, and this is another difference between the stock market and forex trading. I recommend further training to achieve good results in both markets.

Have you noticed how anytime you walk in to a book store and find your way to the business or financial books all the views that are expressed in the titles are very similar??? In one way or another they all call out for a monetary version of bloodshed. I mean the titles are about “how you can crush the other guy”or “it’s not personal its business”, “How to come out on top” etc etc. Years ago when I got into the real estate investment game I spent hours looking thru the book titles. Trying to find the one book that would teach me how to become that REAL ESTATE INVESTING GOD I knew I could become. After reading many of the most popular books of the time I actually would feel beat up over the content. I mean did I have to be a “take no prisoners” type of investor? Did I have to prey on some one else’s misfortune?? The answer was no. However I did need to learn to take somethings to heart,and NEVER let go of them. I liken it to building my investment suit of armor so to say. So I set out to build a list of my investment rules. We each should have our own set of investment rules. It will help you keep the animal investor inside of you in check. In my case,being that I am a VERY competitive aggressive alpha male type personality I need rules that would keep me “Human”. My own set of personal laws that would keep me on the “non predatory” path. Doc’s Rules for investing:

1) Set up personal guidelines: Define and follow your personal guidelines. This is the most important rule I have. My guidelines define the investments I will go after as well as the amount of investment I’m willing to part with to get it. It outlines my investment strategy as well as how I want to conduct my investment business. Things to include, but not limit you to, are: Top dollar amount and lowest dollar amount. Type of investment you want to deal with. Period of term for investment.. Etc etc. (Between you and me I even have a guideline about the amount of time I will work per-day)

2) Remember some ones family is behind the deal you?re working on. Simply put,whoever you are dealing with has mouths to feed. Don’t forget this. Just because you can get a great deal on a house because the current owner is in a facing some sort of adversity that is causing them to sell below market value, doesn’t give you license to kick them when they are down. Treat everyone with dignity and respect. If the price they are offering still falls within the personal investing guidelines you have set for yourself don’t use your position to abuse the seller. If you are getting the house for .40 cents on the dollar,don’t be a jerk and push for .38 cents. Always remember…it could be you in the sellers postion. (This rule DOES NOT come in to play when dealing with a bank owned property)

3) Always ask for what you want. No where does it say you can’t ask for something in an investment deal you like, I.E. if you’re looking at a piece of real estate with a pool,ask the seller if they would be willing to throw in new carpet to the sale. I once met a investor who was looking at a house that had been on the market for more than 6 months. When he went to talk to the seller he happen to see a 1954 Merc Coupe in the garage, so he asked if it was included in the deal. The deal eventually closed for the house AND the car. 4) Offer everyone the chance to make money as a bird dog for you. I always give several of my business cards to anyone I do business with and offer them a portion of any profit I make from any investments they help me locate. You would be amazed at how many people are willing to help you make money when they get a small part of it for doing very little work. (And if you follow rule #2 you will be amazed at how many of those bird dogs will sing your praises from the highest mountains)

Just some ideas of things to keep in mind when you’re working on your investment mindset. I have used these rules over the years,and in many cases they, have gotten me more return and repeat networking opportunities then I can count.

There are numerous ways to learn Forex trading. Your best bet to learn the basics of the Forex market is to find a reputable Forex broker. Of course you can still get solid Forex education from other sources. You can study online or just read important materials about Forex. Here are some of the simplest steps you can do to learn Forex and master the art of trading at the currency market.

The name of the game is statistics, and the first rule is that you must be aware there is no such thing as a sure thing on the forex market. While you can never be 100% sure at any given time of the next move that will be made on the market as a whole, being able to read statistics and interpret them will place you ahead of the pack in regards to “guessing” what will happen next.

You can experience actual Forex trading using virtual money provided by the Forex broker. In this way, you can certainly learn Forex trading faster because you are participating directly in the currency market.

To complement your practice trading, you can also look for an online school that provides Forex training and education. Actually, you can request a list of online Forex School from your Forex broker. You can use this list to refine your search for a suitable program to learn Forex trading. You can also make an independent search for an online institution that can teach you how to trade at the Forex market. A formal education on Forex will systematize your learning process which is advantageous for you.

Self study is also a good way to learn Forex basic and advanced strategies. Again, if you have chosen an excellent Forex broker, you can get lots of reading materials and online resources from it. You can still do this yourself and search for good online articles that could teach you how to trade at the Forex market. Simply visit any article database site and browse for topics about Forex. Choose the ones that provide detailed instructions on how to trade currencies. This is also the best way to learn Forex trading for free.

If your broker does not supply you with these charts, then you should easily be able to draw them yourself with the modern day charting software or trading platform that you get from your broker. These software platforms can draw most charts for you by entering a couple of parameters and viewing the result.

It is recommended however that you learn at least the basics of charting and statistics before you start trading live.