Before we look at trading we need to understand what forex means. Forex is short for foreign exchange and is about currency (money) exchange. All countries have a currency and this can be exchanged for another countries currency.
When we swap money in one currency we get back a different amount of money in another. Depending on the exchange rate we get back different amounts. The exchange rate changes depending on the economic relationship between the currencies being exchanged.
To trade currency we use the movement of these currencies to make money. The forex market is always moving and can be considered to be alive. It is made up of all of the forex traders in the world. As traders buy the market goes up and as they sell it goes down.
There are many different levels of traders from the big banks, hedge funds and big business involved in global commerce, down to the private trader who makes money from trading.
If we want to make money trading forex we can do it in two different ways. The first is fundamental trading, the second is by trading technically. Both ways will make money but only if we choose a way that suits our personality.
When we trade with a fundamental approach we are looking at the macro or big picture. This means we use economic reports to determine our trades. This could be one country becoming economically weaker compared to another.
Technical traders are not interested in the fundamentals of trading all they wish to do is trade the price patterns on their charts. When done correctly this type of trading can make consistent returns.
When we choose the right way for us to trade we put ourselves into a position of strength. This is the first step towards trading success.
When we swap money in one currency we get back a different amount of money in another. Depending on the exchange rate we get back different amounts. The exchange rate changes depending on the economic relationship between the currencies being exchanged.
To trade currency we use the movement of these currencies to make money. The forex market is always moving and can be considered to be alive. It is made up of all of the forex traders in the world. As traders buy the market goes up and as they sell it goes down.
There are many different levels of traders from the big banks, hedge funds and big business involved in global commerce, down to the private trader who makes money from trading.
If we want to make money trading forex we can do it in two different ways. The first is fundamental trading, the second is by trading technically. Both ways will make money but only if we choose a way that suits our personality.
When we trade with a fundamental approach we are looking at the macro or big picture. This means we use economic reports to determine our trades. This could be one country becoming economically weaker compared to another.
Technical traders are not interested in the fundamentals of trading all they wish to do is trade the price patterns on their charts. When done correctly this type of trading can make consistent returns.
When we choose the right way for us to trade we put ourselves into a position of strength. This is the first step towards trading success.
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for more information about forex trading visitforex trading tutorial or how to make money from money exchange
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