About
Frequently asked questions
Found the right answer? If your question has not been answered below, please don't hesitate to contact us.
Forex is a shortened version of Foreign Exchange, and essentially we trade one foreign currency against another by exchanging them. Imagine you know of a drought coming that will affect production, or if the country starts losing power or anything that could weaken the economy. Then you purchase a foreign country’s currency before it happens.
As an example, let’s say you live in Britain and due to some political issues you can see that investors are likely to start pulling out. So you spend your GBP and you purchase Euros. Then the GBP weakens, and after some time you sell back your Euros to buy GBP. You get more GBP than what you spent to purchase those Euros in the first place. And that is essentially forex trading for profit.
Of course, we don’t have to deal directly with banks and other exchanges, we have far more sophisticated, cheaper and faster ways to trade foreign currency for profit!
People trade for a variety of reasons. But let’s be honest, it’s mostly about money. What you do with that money may vary from person to person. Forex is by far the largest tradeable market, dwarfing even the largest stock markets combined.
Due to the high liquidity, it means that those trades are executed very quickly. It is rare for a trade to take longer than a second to open or close. You don’t need to invest a lot to get started trading forex. The ability to manage your time much better. You are not stuck in a 9 to 5 job, no traffic, and while you do have to spend time trading you can be flexible.
We can teach you how to trade, and we offer a huge amount of free training and information. The internet is full of information on how to trade Forex, the problem is that anyone can post anything on the internet. If you’ve been doing research, you’ve probably found a lot of strategies that just don’t work.
Our approach to training is to teach you more than just a strategy, but rather how and why it works. This way you have a much better understanding of what you are doing and you will be able to adjust and alter your Forex strategy to suit your trading style.
GBP ZAR forex pair on the 4-hour chart
The above chart is an example of one of the strategies we teach. Not only because it is a profitable strategy but we have also found it to be an incredible teaching tool because it covers several of the more popular indicators. You will learn the strategy, as well as learn why each indicator is there so you can alter them, replace them or even remove them. You will know what you are doing and can customize any strategy. Better yet, you will be able to read up on someone else’s strategy know if its nonsense or not.
Our core online course is 100% Free! No strings attached, and it is a complete course available to anyone who registers through Gee Forex.
The above image is a screenshot from the Meta Trader 4 platform, it is still the most popular forex trading platform available even though Meta Trader 5 has been out for quite some time.
The above chart is showing us the exchange rate between the Euro and the United States Dollar. As forex traders, we look at these charts and try to figure out what is the most likely direction the chart will continue. The more practice you have, the more likely you are to get it right. Once you’ve made your decision, you go ahead and place a trade.
To keep the numbers simple, we will choose the exchange rate of 1.17000. The chart is showing 1.17896, but we’ll use the easier number just for this example to be clearer.
Nowadays, you can trade from anywhere on your mobile phone
So based on whatever forex trading strategy you are using, you decide the EUR USD pair is going to continue going up. And you buy on that. So you are buying Euros and selling Dollars. Let us say you buy 1’000 Euros, at the exchange rate of 1.17000, it will cost you 1’700 Dollars to buy those Euros.
After a day or a week the chart has moved in the direction you predicted and the exchange rate is now 1.175000. Your strategy says that it is time to close, or maybe you’re just happy with the profit you’ll make. So you close the trade.
Because you bought Euros and sold Dollars, you now do the reverse. Don’t worry, Meta Trader does all of that for you! So you now sell back the 1’000 Euros you purchased and get back 17’500 Dollars.
Or initial cost was 17’000 Dollars so you have made a return of 500 USD on that trade.
And that, in a nutshell, is what forex trading is.
A lot of a trader’s day is not that interesting. We probably watch more Netflix than is healthy for any human. But then there is the trade itself and the rush that comes with it.
Spotting trends, waiting for things to line up, finding the right pattern and entry. Then you put your money on the line, you have your stop loss and take profit set. Even now, after 15 years of trading, we still get a thrill when we watch that profit number turn profit and the market moves towards my take profit.
It’s not for everyone, and a lot of people can’t handle this stage of being a trader, but for those of you who can and actually enjoy it then you can do very very well.
Above and beyond the potential to earn an amazing amount of money, being a forex trader comes with other perks to make your friends jealous. One of the largest factors is time.
We treat trading forex as a business, where we put in my hours and do the work to get it done. But if something comes up we can just not trade that day and do whatever. So if the kids are on holiday, we can take them to the beach without needing to ask a boss for the day off.
If we’ve hit my monthly target already and made a couple of extra bucks, we’ll often take the rest of the month off. In many ways, it is like running a business, but you don’t have the excessive overheads and other headaches that come with it. You don’t have staff, most likely you’re trading from home so no additional office space rental to pay for, etc.
This doesn’t mean you can slack off! You have to put in the hours if you want to see the returns. But it is as flexible as you need it to be. If you’re a family person, you will never need to miss those important milestones in your kid’s lives.
If you’re single, then you have all the time in the world to impress that special someone!
Forex trading is a high risk, but it is also high reward. There is no way to completely eliminate the risk but with proper training and strategies you can reduce your risk, and the rewards can be fantastic.
When comparing it to the more commonly known stock trading, forex wins every time. Unlike stocks which are traded at central exchanges, forex is traded between thousands of world banks and is available 24 hours a day.
On average, about four trillion USD is traded per day. With busy days hitting the twelve trillion USD mark. This dwarfs stocks, and with all this liquidity we find that there are far more trading opportunities.
With forex, your earnings can potentially keep increasing every month at a much higher rate than inflation.
