I'll try to explain what I've come to understand so far.
Forex = Foreign exchange
Forex trading is done by trading on a pair of currencies. The big 5 currencies traded are USD (US dollars), GBP (Great Britain Pound), EUR (Euro), JPY (Japan Yen) and CHF (Swiss Franc). There are some other traded currencies as well but because of the size of their economy to be comparatively smaller than the above mentioned, I shall for the time being avoid them.
In layman's term, forex trading is more or less like trading the economies of a country compared to the other. For example, I would buy (go long) on GBP against the USD if i think the british economy is progressing, or the american economy is regressing, or both.
It is not always this simple though, as there are many factors that can determine the strength of the currencies.
If you are interested at this point, simply head to BabyPips to learn more. It's a lovely and informative site, take my word for it if I say it's the BEST forex site for beginners.
Let's get started right now as I start a strict trading regime. But before all that, just a little comic to calm the nerves.
He is in fact wrong, money can buy happiness, but that depends on what type of happiness it buys. If you're talking about fast cars and the adrenaline rush then you have an idea of what I'm thinking. So the aim of my trade is of coz to make money (fake money but still as important nonetheless, it's my pride)
So here's the brand new account with USD1000 and a leverage of 1:100, which means I have USD100,000 to trade but could lose money A LOT faster than a 1:1 account, double-edged sword this is.
I shall talk about my plan next.