Evening again ladies and gents Just finished reading Forex Strategies by Tony Rental and as always made a review for you guys. So let’s get you up to date why would I read on Forex.
Recently I was looking for a job in sales and ran into a sales job in the Forex market and was wondering what that is. Also I had been invited to go through a course for the job and felt like I must read about it ( It would be weird to go for a job when you don’t know what is it’s purpose… Even though it sounds important… ). So here we go, sharing what I’ve learned with you, briefly.
Forex Strategies - Tony Rental Review
What is Forex?
Forex stands for Foreign Exchange and is basically the market of exchanging foreign currencies one for another, there are also certain metals that are included in this market. Basically every currency conversion is included in that market, so every time you fly abroad you engage in it 🙂
What are the differences between the Stock Market and the Forex Market?
In this case I read a blog article on the subject as the reading of the book was monotonous and I couldn’t quite understand the difference. And it basically stated the following:
| Term | Stock Market | Forex Market |
|---|---|---|
| Trade Volume | About 200 million USD daily | About 5 trillion USD daily |
| Activity | 8 hours/day usually | 24 hours/day, 5 days a week |
| Liquidity | Not so liquid | Very liquid |
| Comissions | Per action (Spread) | Per action+Monthly |
I’ll add those blogs at the bottom of the article so you’re welcome to scroll down and check them out aswell.
Dangers of Forex Market
Leverage
Fastest way to lose money in the Forex market is by using leverage. This is the same as if the Forex trading company would loan you money.
For example you could use a 1:100 leverage.
It means that instead of the 200$ you have just invested you could be investing 20,000$.
Why would a company lend me 20,000$ you ask?
Well that’s because they don’t lend you that money.
From what I understand they use their money and just add yours to it. Therefor when the market goes down or up you will lose or win a hundred times more. Instead of gaining 0.0001 with your 200 dollars initially you could gain 0.01 for every movement. The higher the leverage, the higher your possibility of gaining but so is the possibility of losing. But there is another but. Leverage usually also comes at a price. The broker might withdraw the leverage when it seems that they are about to lose a lot of money. They are the owner of those 20,000$, and they leave themselves a right to decide on those. You sign a contract that says that they may withdraw the money in case they wish to. And this could be a problem because they may leave the market against your will.
No exit strategy
A lot of beginners concentrate on their entrance point (to the market) in order to come in at a time in which a raise of currency will follow. Yet they fail to plan an exit point.
So when they start losing money they keep on waiting for the money to raise. Which never happens, and so they lose all their money.
Wish to know more about Forex? Check out the book at Amazon
https://amzn.to/3698gak
Or get it free with audible trial
https://amzn.to/3l9KWgH
My experience
Might be a scam?
As I first heard of the Forex market, People I know told me that there are scams involved in it. They told me that the brokers* and salespeople actually deceive people.
And it got me scared, as I feel obligated to be selling something that I believe is helpful for society. I couldn’t and wouldn’t be a part of scams or something I believe half heartedly.
Is this gambling?
At the second I found out it’s a currency market , I’ve started thinking about it in comparison to the stock market. My thought told me there is a lot smaller chance to gain at Forex because there are so many unpredictable elements. Therefor there is a very high chance that it is simply gambling, like a casino and I’m against gambling. So I wouldn’t want to be promoting it, and therefor working at a sales job in the field.
But as I kept thinking about it further, and reading, I understood that the Stock market (Of which I have a positive opinion) and the Forex market are really interconnected. And that the Forex Market might be a powerful tool just as the Stock Market. It just depends on the person. It could be an investment tool with strategies in the right hands and not just gambling.
Studying world economy
Hanging around in the area of Forex and being aware of World events that influence the foreign currencies might be a great opportunity to stay “In” the news about world business.
Also if I wish to trade In the stock market or start a business of my own, it always helps knowing what is going on in the world economies. The indulgence in the Forex Market makes you follow the right news to know what is awaiting the currencies. And of course If you are trained to predict currencies, you usually have quite a good idea in world economies.
Conclusion and Book Rating
Anyway, for now I’m in the opinion that the Forex market is a tool just as the stock market is. Therefor If people lose in it it’s mostly because of lack of education and simply gambling. Nonetheless there are ways and techniques through which you could gain an upper hand on the market in the long term. Just as in the stock market.
But education must be obtained, you may start your journey with this book if you wish. 🙂
The Book itself brings a nice basic understanding of the subject, but it is a bit difficult to understand anything from it in the beginning. It is overflown with terms which are not explained straight away. Moreover the reading is quite monotonous, and there is no storyline. Overall I would rate the book a 3.5 – 4 maybe.
I also believe that it would be easier to read it in paper format. The problem with that is the corona virus and the delivery time in contrast to the audiobook .. 🙂
Blogs for more info
Vocabulary
Brokers – The people or companies who you call in order to trade. Sort of middlemen
Acquiring options for the book of this Review, Forex Strategies by Tony Rental. (Plus bonus)
Audible 30 day free trial
Disclosure: If you proceed through those links I’ll be getting a comission, for which I’ll be thankful to you 🙂YouTube Review
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