Forex Trading: Introduction to Foreign Exchange Trading

The foreign exchange markets are always in a constant state of flux, and for the budding trader, it can be a rather daunting place to invest and trade your money. We bring you into the world of foreign exchange trading. As you look into the prospect of trading you will begin to understand the width and breadth of the market. It is a worldwide market trading currencies 24 hours a day 7 days a week (Well actually, markets are actually open for about 5.5days a week actively trading). As a consequence of this huge market, the market is highly liquid and high volume takes place daily. As the market in constant flux there are plenty of opportunities for trading.

Forex trading takes advantage of the constant flux of the market, buying and selling into and out of the ebbs and flows of the foreign exchange trading charts. Many profitable trades await the trader in these markets. So as you examine your charts as a trader you will find that the market display’s repetitive behaviour as well as trends. Trends can go in three ways; an up trend, down trend and a sideways trend. As a trader you take advantage of price differences so you ought to stay away from sideways trending markets while jumping at every chance at up trending (long) markets or down trending (short) markets.

The important catchphrase in trading or any other trading for that matter is that “the trend is your friend.” An uptrend is simply defined as a set of prices on a chart that…

Source by George Polizogopoulos

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