When you trade in the Forex markets most of you trades will fail. I have heard it said that 70% lose. However, the good news is that the other 30% give you the returns you want. In order to succeed you need discipline and patience and sometimes nerves of steel. These are qualities few investors have. I use the word "investor" but what many people say about the Forex markets is that you are a "speculator" not an investor. How this definition is arrived at I do not know but it may be something to do with the fact that a "speculator" seeks quick profits whereas an investor looks more at the long term.

NEVER trade these markets unless you have the money to lose. It is true to say the Forex markets offer opportunities for potential gains unparalled with other investment instruments but remember just as you have the opportunity on the one had for profit on the obverse side of the coin you have the chance of LOSS. If you play the Forex markets right you can make it to the million mark. That’s not false promise.

Is it difficult? Before investing in any market it is important to understand the market you are in. Ever heard the saying "fools rush in"? In 1986 I was badly burned on the London options markets. Why? Because I did not understand a thing and left it to someone else to make the trades.

There are 2 main ways you can trade the Forex markets:

1. Options
2. Spread betting

Options – (derivatives markets) do take some time to understand. They are in the form of "puts" and "calls". You need to determine the way you think the market will.

Spread betting – this has come to the fore in recent years mainly via the advent of the internet. It is far easier than options trading. You merely determine if you want a market to move "UP" or "DOWN" and place an amount per "point".

Example: I look at the financial papers one day and believe that the Euro will rise against the Dollar. I go for an "up" bet on the dollar. I then determine how much I wish to place – let’s assume it’s £10 per point. If I am right and the Euro does appreciate against the dollar it’s whatever the price movement x my stake:

£10 a point
Movement: 50 points
Profit: £500

Many people will tell you that the Forex markets are for the "professionals" or people with "know-how". This is nonsense! Trading the Forex markets is like anything else. You can actually learn the way trades are made and educate yourself. Do you really think anyone is "born" with expertise?

The first step is to educate yourself. I cannot stress this enough. If you walk into something "blind" you are bound to fail. If lawyers, accountants and other professionals train for years then don’t think you” understand the market in a few weeks. This takes time. With patience and dedication you can succeed. The fun part about learning the basic of Forex is that the markets never tire, never wear out and are always constantly moving. This provides the astute Forex trader with new opportunities FOREVER!

I recommend these sites:

http://www.toniturner.com/ – investment guru

For trading:

http://www.tradindexclassic.com/

http://www.igindex.co.uk/

http://www.finspreads.com – have details for the new trader!

Good luck with your trading!
References :
Trained in law for 7 years. Extensive knowledge of financial markets.