Forex Trade and Investment

In this topic I want to let you understand this two (2) main business in the financial world.

Let's go...
Forex Trade is the ability of an individual, in this case you, to be able (after being trained) to buy and sell financial instruments (currencies) in other to make profit.

While investment is the decision an individual make by asking someone else to trade (buy and sell) for him or her, thereby sharing the resultant profit together.

As I earlier informed you, Forex (i.e FOReign EXchange) trade, is not a gambling business as found in lotto or lottery, where people depends on luck. The choice of numbers played in them has no rational stance. Moreover they are at the mercy of the company.

In forex trade, seasoned traders, BUY or SELL based on SPECULATION. By this we mean that their trade is based on an economic calendar (Time Table). This is because the countries of the  whole world has an economic calendar. This calendar or time table shows the trader what happens in the economy of every country from time to time.

The Forex trader now, (speculates) uses the economic calendar to place his trade based on the past statistics or history stated in the calendar.

See an economic calendar from this link.

The use of this economic calendar, in the financial world is termed the use of FUNDAMENTAL ANALYSES. (Don't be in hurry, I will guide you later on how to use it to place trade).

Fundamental Analysis is not attached to METATRADER 4 platform, but what you will get attached to your platform in the chart area, after you download, is called TECHNICAL ANALYSIS.

Both Fundamental and Technical analysis are used for Forex Trade speculation. But fundamental analysis is more easier to use than  technical analysis (We shall treat it later).

Question and Observations are kindly welcomed.

Please, download the Metatrader 4 Platform if you haven't.

Next Topic: The Importance of Brokers in Forex Trade.

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