Forex Psychology

Forex psychology changed little with time, as human will always make the same mistakes over and over again.

Speculation

Controversy about currency speculators and their effect on currency devaluations and national economies recurs regularly. Nevertheless, economists includingMilton Friedman have argued that speculators ultimately are a stabilizing influence on the market and perform the important function of providing a market forhedgers and transferring risk from those people who don't wish to bear it, to those who do. 

Financial instruments

Spot

A spot transaction is a two-day delivery transaction (except in the case of trades between the US Dollar, Canadian Dollar, Turkish Lira, EURO and Russian Ruble, which settle the next business day), as opposed to the futures contracts, which are usually three months. This trade represents a “direct exchange” between two currencies, has the shortest time frame, involves cash rather than a contract; and interest is not included in the agreed-upon transaction.

Risk Warning

High Risk Investment
Trading foreign currencies on a margin carries a high level of risk, and may not be suitable for all
investors. The high degree of leverage can work against you as well as for you. Before deciding to trade
you should carefully consider your investment objectives, level of experience, and appetite for risk.

History of the Market

Today’s forex market was formed in the early 1970’s. The first major step in the formation of the market was the Bretton Woods Accord, which was established after World War II to restore the world’s economic state. The Bretton Woods Accord decided that all major currencies would be pegged to the U.S. dollar, which was pegged to gold at a price of $35 per ounce. Under these standards, the major global currencies pegged to the U.S. dollar were only able to fluctuate by one percent.

How to Make Money on Forex

During great economic recessions, the opportunity exists to make money and great investments by taking advantage of everything the recession has to offer. The cost of real estate has plummeted, so what's stopping you from investing in property? The demand for work is tremendous, so why aren't you hiring workers for that business you have dreamt about for the past decade?