We understand that trading forex can be daunting, and we know you’ll have a million to one questions about it. At McM, we want to ensure you know exactly what you’re joining, so that there aren’t any hidden surprises later. Here is a list of our most commonly asked questions.
What is Forex?
Forex is the world’s most traded market, with an average turnover in excess of US$5 trillion per day. Compare this to the New York Stock Exchange, which has a daily turnover of around US$50 billion and it’s easy to see how the foreign exchange market is the biggest financial market in the world.
How to trade currencies?
Currency is traded in amounts referred to as LOTS. Each lot has a different account of currency. Example; Swiss Franc lot has 125,000 Swiss Francs in it. A trader opens a margin account, that enables him the right to trade it. We provide comprehensive courses specifically designed to teach you how to trade currencies. You can view our courses here: http://www.mcmfx.co.uk/forex-courses/.
If I trade forex can Iose all of my investment?
In short, no. You can’t lose everything you own. The self taught are likely to lose their margin account. The educated will likely capture the loser’s margin account.
How much money can I make?
If involved with the right company, that provides education, mentorship, online webinars and follow up you can expect to create a financial performance expectations plan.
Is trading a form of gambling?
All forms of trading and investment can be construed as a form of gambling, although neither are the same as playing the lottery, betting and roulette. Traders seek price fluctuations and Investors seek return on investment. Both require a calculated risk that is minimised by knowledge. You are always gambling when you don’t know what you are doing. When you trade after you have been educated or mentored by our Senior Trader, or by other successful Traders, you are now taking a calculated risk.
How much money do forex traders earn?
It all depends from experience and constantly showing consistence in your trading. Year 1 : £50,000 by year 3: £100,000.
The difference between Forex & Futures?
Currencies refers to money that represent the monetary system from different countries. Example: Canadian dollar, South African Rand, Brazilian Real, Great Britain Pound, Swiss Francs e.t.c. Futures trading of currencies is done in trading pits, where you are trading those currencies today, but for future prices. Forex trading is trading actual currencies at today’s exchange rate with banks. All trades are done through brokers or market makers.
What is good judgement trading?
Good judgement trading is the exact opposite of Black Box System. It’s a complete understanding of the market and its constantly changing environment. It is a clear trading methodology utilising high probabilities. When a trader is educated, he no longer takes a shot gun approach to the market. He takes a focused “rifle and target” approach.
Is online trading same as buying actual currencies?
No. With your margin account, you are buying the right to trade one “lot” of a currency. Each lot equals a difference amount of currency, depending on the currency being traded versus the US Dollar.
Can I learn while I earn?
Yes. Your success is directly related to how soon you start. Begin with a small realistic objective and practise.
How long is the training programme?
It takes about 6 weeks to review lessons 1 – 8 following the 5-days training program.
Can I be self taught?
Yes. But its very risky and you are likely to lose all your money. Without Forex trading education and mentorship from experienced Traders you are literally Gambling.
Do people become professional traders?
Yes. Investment firms look not only for a degree level education but also for experience in trading financial markets.
What is margin account?
A margin account is a bond account. Its similar to a savings account. Before you can trade, you need to place a certain amount of money in what is called a margin account. You are guaranteeing other traders that you can pay them if you lose. That account is overseen by your Broker. He monitors your account when you trade. Usually your Broker may not allow you to risk more than what is in your margin account. The margin account exists so, as you win on a daily basis, they have a place to deposit your money. Conversely, when you lose, they have an account to withdraw the money.
How to make money trading currencies?
Currencies are traded on a pip system. A pip is another word for a point in the currency trading arena. Traders are trying to capture points. Depending on the currency, each point is worth a different amount. Example; the British Pound is worth about $10 per point that is traded per lot. If you trade 1 lot and capture 40 points, you just made $400. If you trade 10 lots and capture 40 points, you just made $4,000.00.
What is minimum deposit amount to trade forex?
It depends on the Brokerage Company, minimum from $250 Industry standard.
What is psychology of trading?
Where money is involved so are emotions. Many people are quite knowledgeable about trading but can’t handle the emotions. Your emotions will be your biggest obstacle to successful trading. Not the techniques. To be a successful trader you cannot trade emotionally. You must trade logically. Our egos drive us to be successful 100% of the time, but in reality no one is successful in 100% of the time. Not even the professionals. Successful professional traders clearly understand the market is about logic, not emotions. They trade logically, not emotionally and they are the 10% who trade successfully all the time!
Are there any books I can buy to read about forex?
Hundreds of books are available on the internet and we recommend you read them. Hundreds of authors have written books about most of the characteristics of the markets. One must decide what they want to trade, educate themselves and then focus their energy on that area of the market. Why? Because success in trading comes by focussing on one or two markets and specialising in those markets.
How long is trading forex open for on a weekly basis?
Forex is traded 24/5 however, depending on a country’s time zone, certain markets will open and close and different times.
What is Day trading?
Day trading is when a trader buys and sells his lots or stocks that same day. He is in and out of the market that same day. He does not hold his position overnight or for a week, etc.
What can MCM FX Trading School do for you?
You will begin personal involvement with a reputable firm and successful professional traders. We will teach you all the processes for becoming successful. We will provide you with personal continuing support, research and education. We offer variety of courses from; Beginner to Advance Fx Platinum.