Forex Trading is all about buying and selling of foreign currencies. These foreign currencies are traded in pairs e.g. EUR/USD, EUR/JPY etc. the most important thing to know in Trading is: Buy, when the market depreciates, and Sell, when the market appreciates. there are two ways to determine which currency to trade and whether to go long (Buy), or go short (Sell): Economic analysis and Technical analysis.
Economic analysis deals with Market Event alert that helps traders monitor scheduled market events throughout the Trading sessions. Most often, a trader does not have time to watch all events that can cause market to react. Market Event alert allows you to prepare yourself ahead of an event, to read pre-event analysis and commentaries and, if the event is to be followed with the release of economic data, to compare the data with the previous values. News and live discussions on chat channels, provided through the client application, are there to help you better understand these events.
On the other hand, technical analysis deals with indicators within the client terminal that helps traders to spot a trend during a market session. more common indicators include: stochastic, R.S.I, R.V.I, Moving Averages, candle sticks, etc.
Candlestick analysis is fast becoming the best tool in technical analysis because it enables traders to spot trends easily. Buy When the market is bullish, i.e. when the candle is white; and sell when the candle is empty or shaded. when the candle is going up, it means that the market is selling, therefore a good trader will go long(Buy). When the candle is coming down, it means the market is buying, therefore a good trader will sell that currency pair.
To start Trading Forex, you must be registered with a broker. There are countless number of Forex brokers online to choose from, and they only charge their commission through the spread. A spread is simply the difference between the bid and ask price. In Forex Trading, profits are calculated by the marginal pip increment. A pip is the smallest unit of a currency pair. Margin is the amount of money that is required of you from your broker on or before you start Trading. Different brokers offer different margin rates and leverages to their traders. The leverage is the amount of money that the broker is willing to offer you with, so that you can trade the highly voluminous Forex market. Other instruments that are trade-able are Gold, Silver, Oil and Gas, and Platinum, stocks, futures, etc. The list just goes on and on.
Forex Trading is no big deal like some traders emphasize, you can start making money immediately if you can relax in the comfort of your room for 30 minutes and analyze the market carefully with the tools discussed above.
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