Let's start by saying what Forex is not. Forex is not Cryptocurrency or the Stock Market.
Cryptocurrency is the trade of digital currencies that do not have a Country backing them. Crypto is backed by people. Therefore it is very unstable as there is no economy protecting the projected value of the currency. Crypto, as it is called for short, projects its value and stability by its popularity with the people and the big names that have invested in it. For example: Bitcoin gained value because Elon Musk started taking Tesla purchases in Bitcoin currency. This showed that the currency had the backing of a major personality on the World stage and the value of Bitcoin shot up, but as soon as it was reported that Elon Musk was beginning to sell his shares in the currency, it's value plummeted quickly.
Stocks are a little more stable than Crypto (IMHO) because they are backed by companies. If a company has a good quarter then the value of the stock rises, but if the company gets unfavorable press or bad quarterly numbers, then the value of the stock will fall.
This drives a buy low sell high mentality. Forex is different because I don't necessarily need my currency of choice to rise. I can see that the chosen currency is expected to fall and simply sell it against the currencies trading pair.
Forex is a market all to itself. Forex swamps the stock market in volume. For example, the stock market trades an average of $55 billion a day. While the Forex market trades an average of $6.6 trillion per day. Crypto comes in at about $51 billion per day.
Why is the Forex market so much bigger? Because the Forex market is made up off all of the currencies in the world, ranging from the US dollar all the way to Danish Crone. The stronger a country's economy the more stable its currency is.
So what is Forex then? Perhaps it would be best to give an example: If you were in the United states and had $100 Dollars and wanted to travel to Mexico you would need to trade your Dollars for the official Mexico currency, which is the Peso. Let us say for example you were to receive 7 Pesos for every Dollar when you made your exchange. You would end up with 700 Pesos. If you stayed in Mexico for a week and didn't spend any money then when you went back to change your Pesos back for Dollars you would most likely not receive $100 Dollars back. Why? Because, while you didn't spend any money the countries did, and their economies changed on a micro level. Let's say that the U.S. Economy became slightly stronger. Then you would receive back maybe $105 Dollars. On the other hand, if Mexico's economy became stronger you may receive more around $97 Dollars.
That is what the Forex traders do in a nut shell. We trade the micro fluctuations between countries currencies.
My role in this is two fold. The first is that I have a fascination with Forex and am an active trader. The second is that I have a skill for meeting people wherever they happen to be in their forex journey and help them overcome whatever obstacles they may be facing in becoming a profitable trader.
I encourage you to go over to my website at oMoDalton.com to browse over and utilize the free resources I have made to aid anyone on their journey including many Youtube videos.
If you feel you need a more customized approach to your trading, I offer one-on-one Forex trading analysis and training. I do not think there is one way to trade Forex, so I prefer to help a person learn to trade with their strengths rather that force a one size fits all approach to their trading journey. If you would like to meet privately, click this link.
If you would like to be part of a great trading community, click here to be directed to the two Facebook pages that I am involved with. The Forex Help Group and Forex for Beginners. There you can get community answers and support for your trading journey.
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