Typically, in the FOREX market, currencies are traded in pairs. For example, Euro/US Dollar or US Dollar/Japanese Yen. Whenever you trade currencies online, you are then, buying one currency and selling another. Currency pairs are abbreviated. The above pairs would be EUR/USD and USD/JPY. The currency on the left is called the base currency, and the one on the right is the cross currency.

The value of a currency pair is determined by the strength or weakness of the base currency in relation to the cross currency. The base currency value is always 1. That means when you see a quote of 1.4652 for the EUR/USD, its value means 1 Euro will buy 1.4652 dollars. The next day you may see a quote for the EUR/USD of 1.4725. If you listen to the financial news you will hear them say something along the lines of, “the Euro gained strength against the Dollar today”, or “the Dollar fell today against the Euro”. In pocketbook english, that simply means it takes more dollars today to buy 1 Euro than yesterday.

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Free forex trading seminars are one of the most effective ways for new forex traders to learn more about the world of forex trading. However, as with anything in life, there are pros and cons to these free seminars.

Obviously the people who are running them are not in it just to give you a free education in forex. They will always want something in return, and usually it comes in the form of a trading course, a promotion for their trading company, trading signals, a more expensive trading seminar, and so on.

Basically, the way these seminars are organised, you will get a few hours of general forex education before being hit with a sales pitch for whatever the speaker is selling. Worst still, in some cases you may find that the entire seminar is a sales pitch for the speakers’ product or company, and you will have learnt absolutely nothing.

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You may have an illusion that forex trading is something very easy and simple but in reality a lot of trader will lose all the money they have. So what are the mistakes they made?

In fact, the number one mistake they make is that they do not prepare well. They will think that they can make money by following a system from others. They may even think that they can predict the forex price. In fact, you should not just follow the others if you want to be successful in forex trading.

Besides, some people lose because they think that there is a formula for them to follow and they can just trade according to this scientific formula. However, the sad fact is that there is no such formula in the world. If such formula really exists, all of us have already become billionaire.

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