Forex Trading

When I was in college, "Forex" was a condom. Many of you probably know about the FOREX market, but for those who don't, it's short for FOReign EXchange. Basically FOREX is a currency trading system using margin that allows virtually anyone to trade currencies. If you haven't seen a ridiculous ad claiming you can get rich overnight trading currencies, you probably aren't paying attention when you're online.

I have been trading FOREX for a few years now. I have a mini account that I originally funded with only $500 and I started out trading in small lots. I have made money and probably could have made more had I had a larger account to start with. I treat my FOREX account like I treat playing BlackJack: only come to the table with what you are prepared to lose!

The reason many people fail trading FOREX is they try to trade too much without knowing what the heck they were doing. They put a bunch of money into an account and trade willy nilly until their account is gone and then they say the whole FOREX thing is a scam. They don't take being STUPID into account. You need to LEARN what you are doing and take some time to study about how the market works, terminology, money management and a whole host of other details. You should also practice trading with a Demo Account so you get a feel for how everything works. I practice traded for nearly 18 months before I opened a real account.

I tried many different kinds of Forex software with different companies before I funded an account. This allowed me to find a trading platform I was comfortable with.

I recently became aware of eToro, a Forex software provider and retail FOREX broker. They have a very web 2.0 approach to FOREX trading. The site explains the workings of the FOREX market very clearly and conciselyLike every other FOREX broker out there, they offer a Demo account. I downloaded it and the interface was pretty easy to navigate and the transaction interface looked easy to understand for beginners. I wasn't too crazy about their charts-I like to plot all sorts of indicators and time frames on my charts and they don't have this graphic capability on their platform. Of course I have my own custom charting feed and software so I wouldn't need it, but it is rather vanilla.

One cool thing eToro has is Monthly Championships where you trade your Demo account with a $2000 "virtual balance." The person who makes the most money trading wins $500! You have to fund an account with the winnings, but what better way to get into FOREX trading than with "house money!"

I'm going to give the March Championship a whirl. Stay tuned....