FOREX is a virtual online market where people trade currency from all over the world. So who does participate in FOREX market trades? The biggest participants are the super banks (the largest banks in the world); they are trading huge amounts of currencies every day and set the buy/sell spread. Another player in the FOREX market is represented by the big companies. Some of them trade enough currency in order to determine fluctuations in the market. The governments and Central Banks are also important players, exchanging currency and making transactions. The last, but not least of the FOREX players in the category named “speculators”. Those are individuals that trade on the FOREX market to win money from the fluctuations of the currencies. The type of people that choose to participate in FOREX market trades are usually ones with a risk appetite. There are two main categories: the ones that have a lot of money and see this as an active investment and those that need the money and invest in FOREX markets because they can start with a little sum and hope they can read the financial signs well enough to earn a lot of money.
The first category doesn’t look at this type of business seeking a fast gain. They usually hire a broker to do it for them and expect a relatively low rate of increase on their invested money. This is a type of people that couldn’t care less if the market goes up or down if, in the long run, they have a fair profit.
The second category made a great effort to raise the money for trading in the FOREX market. They are preoccupied with earning fast and losing as little as possible. These types of people usually try to read market signs by themselves, speculate, and make their transactions decisions. The majority of them do not have prior experience, so they learn as they go.
From a different point of view, the psychological one, there are different types of personalities. The impulsive traders that decide their next move over a momentary change usually lose more than they win. They are usually called sheep or pigs in the trading language. On the other hand, some of the individual traders rely on a very clear plan. After analyzing the market, they decide on one trend: upward or downward, regarding a certain currency. They follow that trend for a while, no matter what the market is doing in the meantime. They are called bears or bulls.
All these types of traders make FOREX a very interesting and alive market, where with a bit of work you can have a wonderful time.