Everywhere you look online are ads and banners promoting becoming involved with FOREX. The ads frequently talk about how you can make a great deal of money by trading currencies, how their company can help you with detailed technical analysis to insure you are profitable, as well as whatever other feature is the buzz word that week. Do not get me wrong, I am not against FOREX. What I see is that many of these ads have the opposite effect of what they desire to do. Instead of encouraging people, their use of fancy words and terms may be scaring people away. For many people the concepts of FOREX are a part of their daily lives. A member of the military stationed overseas gets paid in dollars which he has to convert to the local currency to pay his rent and other living expenses. When you talk about trading in foreign currencies you are just doing the same thing. The difference is that you are trying to time your purchases so that you can earn a profit. You will have to look beyond what the market is today but what you think it will be in the future. One of the scariest things for a new trader is Technical Analysis. Dont get me wrong, one does not need Harvard Executive Education to master technical analysis.
Talking about things like Moving Averages or Relative Strength Index can cause a great deal of confusion in the new FOREX trader. However, when you really look at it, it is mostly just the words that are scary. Having the right platform with at least Metratrader version 4 make it easier for trader to spot main patterns taught in technical analysis. The concepts while difficult to calculate are easy to understand in principle. Technical analysis is perhaps the easiest method to speculate how the market will be, from a small trader’s viewpoint. He will be able to gather the current data in near real time. Different software packages can assist in taking that data and providing you a projection. Just remember it is a projection anything can happen. The best thing a new trader can do is learn. Read as much as you can about technical analysis and start applying it. Start with one indicator and when you are comfortable with it add another. Soon you will look back and scratch your head and wonder what the fuss was all about.