How to trade forex with $100,000.00, a small amount for a start. But you need to understand quite a bit about how the market works, what factors drive the market, and what you can do to advance your stock portfolio. Everything else is secondary.
Understand the fundamentals. These are the rules you need to follow regardless of the outcome. These are the rules that say what will it take to get me to buy ? or will it take to stay in the market ?
If you don’t have a trading education, then you need to get one.
It is not rocket science. I teach my students to keep perspective. The world continues to change.
The economy has continually evolved. We remain in a period of transition. Through it all, the same basic principles have remained the same.
Those same principles apply to any market transaction. Put simply, you buy and sell like any other.
They are constantly evaluating the market to determine strength and price. They are less likely to enter a transaction that does not meet their standards. They may enter a transaction if it is demonstrated to be stronger than the market would allow, or exit the transaction if the market becomes too strong.
When the market becomes too strong, the seller may be in a stronger position and can raise the limit price to match the increase in value.
This allows the price to fall, reflecting the same basic dynamic. When the market becomes too weak, the seller becomes in a worse position and will wish to raise the limit price. This creates a trade in the market that neither side can afford to lose.In the beginning countries would trade with each other using the barter system.
This was simple to understand and easy to use. It allowed us to buy needed goods and services and move to a more permanent settlement. This system worked well for the simple reason that we were able to trade with what we needed.
We had an agreement with the town to provide for our needs and to move to a more permanent home if need be. This simple to understand agreement was the foundation of any successful economy. Now there are other systems in use and these also have their advantages.
Commerce dictates that we should utilize a system of exchange that was once again created using the line of exchange. This time it was the tilling of the soil that provided us with our food. We now call this system of exchange the “Contract of Tilling”.
We created a system of exchange that was simple to understand, work with, and easy to control. We also created an agreement between us and the farmer/farmer to determine the price of our produce. This was then reflected in the market price. If one was able to sell at a price agreed upon between ourselves then we could earn a living.
This enabled us to comfortably live without being dependent upon the market.
We no longer had to travel far to obtain goods or services.
We could now obtain what we needed from the market without having to travel far. This was a major advantage when traveling.