Forex Trading Strategies

The world of trade and investment can be as frustrating as it can be rewarding! Forex is no exception - it is often described as risky, profitable and complex.

Forex is the largest trading market in the world.

Forex is a global market for buying and selling currencies. These markets have been developed to meet the demand and supply of various currencies by governments, companies and individuals - with the aim of facilitating international trade and assisting exporters and importers.

Thus, those who trade in this market are customers, companies, investors, speculators and those who work in the banking industry.

Different countries use different currencies - which vary in value against each other. Forex Trading involves buying and selling two currencies - ie trading in the form of pairs - you sell a currency and buy another currency. For example, the US dollar may be used to buy the British Pound. If the Pound is devalued - it will cost more dollars to buy - the Forex trader hopes to sell his pounds at a higher price than what he bought.

Forex speculator is the person who accepts the default occurrence of reflections in the movements of exchange rates in the hope of making profits from preferred currency movements.

As a speculator you should always start your trade with a small amount of money and have a trading system that tells you when you enter and exit the market. This is one of the preferred options for currency traders because you can trade in the Forex market 24 hours a day with the cost of transactions is almost nonexistent.

This market - its large size is difficult to manipulate - while it can be done with stocks - the Forex market is mostly influenced by global news and events. Thus, the chance of an 'internal manipulation' is not possible.

However - be cautious - forex brokers give estimates that 90% of traders lose money; 5% end at a break and only 5% are profitable.