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.
Paul Bryan operates Forex Reviews, News and Advice - A site aimed at bringing you the best and most independent Foreign Exchange information and articles.
