FOREX - HELPFUL TIPS
Foreign Exchange also called as Forex simply means the buying of one currency and selling another at the same time. We buy low and sell high inorder to make profit. The currency is traded in pairs, for example, USD/CAD.
The first one is the base currency and the second one is the quote currency. In this case when we buy, it means we are buying USD and selling CAD at the same time.
Think of currency pair as Goods/Money. When the value of goods is low, we buy paying a low price expecting that the price will go up and then we can sell.
In Forex, we can make money when the market goes up and also when the market is moving down. This is possible only in forex. When the price is moving up, we buy expecting it to move further and vise versa.
In normal trades, we buy first and sell later. In forex, it is possible to sell first when the price is high and buy later when it goes down.
In forex terms, buying first means we are entering LONG position and selling first means we are entering a SHORT position.
LONG = BUY AT LOW PRICE
SELL AT HIGH PRICE
(In LONG position, we wait for the price to rise)
SHORT = SELL AT HIGH PRICE
BUY AT LOW PRICE
(In SHORT position, we wait for the price to fall)
The purpose of any trade should be to make profit. So one has to learn how to trade profitably. One should know to read the chart, how the trend moves etc. There are many indicators that helps us to learn the trading. For example, MACD, PAR SAR, FIB RETRACEMENT, MOVING AVERAGES, AROON OSC, AND MANY MORE. Different people use different trading system. Some prefer to learn the candle stick chart, some prefer to stick with moving averages. Moving averages are most commonly used. Once you master the art of trading, you can make good money and make a living.
Even if you are not a good trader then you can take advantage of signal services for which we have to pay. There are many companies that offer trading signal. One of them is Pipqueeen. They guarantee you profit. There are many othes too in this market. Whatever your choice is, the main thing is that you make profitable trades.
All the best for a profitable trade.