The foreign exchange market – also frequently called Forex – is an open market that trades between world currencies. Investors basically wager on the comparative strength of international currencies, such as the Japanese yen versus the U.S. dollar. For example, if an investor trades yen for dollars, he’ll earn a profit if the dollar is worth more than the yen.
Don’t ever make a forex trade based on emotions. Emotions will cause impulse decisions and increase your risk level. Emotions are important, but it’s imperative that you be as rational as you can when trading.
In the Forex market, there will always be currency pairs that are trading up, and others that are trading down, but an overall market trend should be apparent. It is easier to sell signals when the market is up. You should tailor your trading strategy to current market trends.
If you’re new to forex trading, …