Today, the Forex market is the largest market in the world with more than 1.8 trillion dollars changing hands daily. With its attractive features like super liquidity, 24 hours market and better execution, it is also considered as one of the most striking and rewarding market. But is it very difficult to make money in the Forex market? Definitely not, provided you know all about Forex and currency trading.
In the Forex market, if you look at the performance graph of Forex brokers, you will see that some traders succeed while others fail to trade successfully. The main reason is lack of proper trading knowledge.
That means they are trading currencies but they don't know all about Forex and currency trading. Therefore it is very important to know everything you can about Forex and currency trading before you start trading in the Forex market.
If you want to know more about Forex and currency trading, start with fundamental analysis and technical analysis. These are two major things that will help you to understand when the market will move up, what is the right time to buy or sell currency pairs, how to gain more profits and what are the currencies to be traded.
Fundamental analysis includes world news, studying variables like monetary and fiscal policy, political conditions, trade patterns, economic indicators, inflation rates, unemployment rates etc.
On the other hand, technical analysis involves computer charting, using trend lines, support and resistant levels, reversals and numerous patterns, and studying the behavior pattern of market crowds to track and identify buying and selling opportunities.
As you enter into the realm of knowing all about Forex and currency trading, you will have a good idea about the major currency pairs that are traded in the Forex market. Among all the traded currencies, currencies that are most liquid and often traded along with the US dollar are:
European Euro
Japanese Yen
British Pound
Swiss Franc
Canadian dollar
Aussie dollar
Generally the most commonly traded currencies are those of countries with stable governments, reputable banks and low inflation.
As you gradually come to gain knowledge, you will understand that your success rate will be high if you follow the Forex trading system. The system has its own discipline that it follows rigorously. The system will let you know what are the trades that have greater rate of success and will send signals accordingly.
The Forex market is global and it is a 24 hour market. You can access Forex market anytime; don't worry if it is night at your place, it will be daytime in some other parts of the world and trade is ongoing over there. So if you know all about Forex and currency trading, you can easily use your online currency trading system and start trading.
The major dealer centers and time zones are that of Sydney, Tokyo, London and New York. However, since the markets are interconnected, if any events occur at any hour, in any part of the globe, the investment community gets affected instantly.
Trading successfully in the Forex market is not an easy task. However, if you know all about Forex and currency trading your success rate will be highly influenced.
