Forex trading is the exchange of foreign currency pairs on the internet, the word Forex is an acronym or combination of the words for and ex, for meaning foreign and ex meaning exchange. In this business you are buying one currency pair and selling the other at the same time. So you need to study the market properly, so that you will know what to do and the right time to do it. You can study the market through fundamental and technical analysis. Fundamental analysis is the use of news release to study the market and 99% of news release is from 10am to 6pm, so if you trade with news release this is the best time to trade. There are so many sites where you can get news release or you can watch news on television, like CNN and BBC.
Technical analysis is the use of indicators to study the Forex market, there are more than 100 Forex indicators on most platforms that can be used for free. These indicators can tell you what to do, if you understand how they work and you use them the right time to use them. If you use and follow them at the time of news release you can lose your money because the news release can make the market go in an opposite direction, as a Foreign Exchange trader, you also have the opportunity to trade over 84 currency pairs, but it is best to pick at most four and concentrate on them, this will make you understand them easily. Also note that before you choose indicators to use, you must have practiced with them by using a demo or practice account.
If you want to make money from Forex trade, you must be able to control your greed, a greedy man can never succeed in the Forex market, to be able to avoid or suppress your greed, have a trading plan, state the amount of money you want to make per day from each trade and if you are making losses know when to walk away. Never trade based on a tip from a friend, because it can get to you late and lead to a great loss. Get a fast internet connection before trading on a live account.
Before you start trading with a live account, make sure that you first practice with a demo account till you understand how to use your chosen indicators, if you want to be a news trader, first practice with a demo account, you have to understand it before you jump into it because more than 80% of Forex traders lose their money due to lack of experience. Also never be in a haste to make money. Before you use any software or robot, you should see it work live on a real account. Most robots work well on a demo account and on a live account they begin to make losses, before you buy any robot, ask for a live account statement of the robot from the owner.
