What you need to know before engaging in Forex

Foreign exchange is becoming a widely popular income-generating activity.  You don’t need a stock broker to manage your transactions, and web-based applications make trading a lot easier compared to other means of investment.  But before engaging in this endeavor, take note of its many ins and outs. 

First of all, the foreign exchange market is one of the most volatile markets right now.  Prices shift every second, such that you can earn or lose money in the blink of an eye.  You have to first understand the trends before putting your money where you predict the shift will be.

Secondly, how much you make depends on how much you invest.  Don’t expect to fully replace your day job’s income during the first few months, let alone become a millionaire in your first year.  Understanding how Forex works takes time.  You have to put in the hours in terms of research, familiarizing yourself with the environment, and obtaining tools that can help you make a more informed decision.

Lastly, you shouldn’t be afraid of failure when you enter the Forex industry.  No matter how much you practice with a dummy account, not all of your trades will be successful.  Learn to stop for the day when things aren’t going your way and continue when your head is clear. 

Jon McKee Queen is currently working with Amatex Capital, a private equity firm that pursues special situations and arbitrage opportunities in Ukraine. Prior to his work with the firm, he was an honors student at Cornell, was on the Journal of International Economic Law at the University of Pennsylvania, and was the top student in the MBA program at Kyiv School of Economics. For more on Forex, visit this website.