Currency Trading is different to trading in stocks. If you are trading shares and have somehow gained insider knowledge and act on it, you are in trouble with the regulator for "Insider Trading".
If you are trading currency and if you have some inside knowledge either harmful or beneficial to the exchange rate of the Euro US $ or any other currency, act on it and make extra money.
A Stock Market Trader working the Forex Trading market will feel like in a different world. Almost no governing bodies, to regulate the market, very little binding rules and regulations to govern the process can make the Forex Market a risky business. Forex trading is not a get rich quick scheme it can be a risky opportunity. The absence of governing rules can mean more risk. What is the Forex Trading volume every day? Almost two trillion US dollars per day every week are traded. That is twelve trillion dollars per week, six hundred and twenty four trillion per year.
Before you get the mental image of Forex Day Traders coming out up to some building with bucket loads of cash, you should understand a few things. The Forex Market technically sells "nothing". Trades are done by computer, and may be described best as a "speculative market".
The market exchanges one currency type for another, for whatever reason that might need to be done, for example, payroll in a multinational corporation. Another thing you should know, especially if you are thinking of Forex day trading as a way to diversify your portfolio, is that currencies always trade in pairs and the insiders will refer to one as long and one short. The long refers to what you have, the short to what you want to have and once the trade is complete can be expressed in the reverse.
Can you start Trading Forex Trading without learning how to do it? Yes, you can the only pre-requisite is, you love to loose money and you can afford to loose. Statistically, over 94% professional traders lose money at any given Forex Trading day.
What are your chances to become successful with Forex Trading if 94% professional trades loose money every day?
After some "accidental" good trades some traders, in particular novice trader, believe that they have learned how to forecast the market and start to invest large amounts of money. Guess what? That is when things start to go wrong. There is more to predicting the market; you have to constanltyl keep on learnig find a system how to trade and stick to your system. A good system has to contain key ingredients like, Money management, Risk Management and Execution of your trade when you press the button.
Forex Trading is not only buying low currencies and then selling them when the price is high. Every professional trader has learned and is exercising discipline, and to keep emotions out. Use your Forex Trading Tools. Sell and buy when your systems would advise to act. Find a good Forex Trading System and learn to follow advise, read and monitor financial news papers and internet sites. Most importantly monitor your returns and don't be afraid to pull back and re-assess your situation.