How to make Money through Forex Trading, Beginners guide, useful tips for Forex Learning

What is Forex Trading and Forex Market?

'Forex Market' simply define as " Where People will buy a currency pair at a lower price and then sell it at a higher price. Their income is the difference between the buying price and the selling price. The broker receives a small commission from his trade called "spread".

Example of Forex Trading:

Suppose you have 1000 USD in your trading account and you want to trade EUR/USD.

The exchange rate is 1.25, which means that 1 euro can be exchanged for 1.25 US dollars.

The exchange rate is like a price tag in a grocery store; the only difference is that the price tag in foreign exchange keeps changing.

Then you make a prediction, for example, you think the euro will rise against the dollar.

He bought 800 euros with his 1,000 US dollars, and then waited for the exchange rate to change.

Let's imagine it goes from 1.25 to 1.35; this is a profitable situation for you, so you can complete the transaction at this time.

Now you can convert your 800 Euros back to 1080 USD and earn 80 USD profit tools. It is called leverage.

Leverage is the money you borrow from a broker to increase your deposit. For example, if you usually use 1:300 leverage on any broker for the similar transactions in the above example, you can get $30,000 in just one transaction.

So, invest $1,000 and trade $300,000! Not bad, right? Remember: higher profits mean higher risks, which is why risk management is an important part of trading.

How do you forecast the forex market?

'Forecast or Prediction in Forex Market' means how do traders know what currency pairs to trade and when to buy or sell them?

The exchange rate depends on the relationship between supply and demand, and the relationship between supply and demand will vary depending on the country's economic conditions (GDP, inflation, labor market conditions, etc.). This is why the political, economic and social phenomena that affect the local economy also affect the exchange rate. Understanding how these factors affect profitability is the key to foreign exchange trading.

2 Major Types of Analysis in Forex Market Trading:

1- Fundamental Analysis:

Fundamental Analysis is simply all about knowing and Following Economic Data, News from Different Countries.

For example: you see that Canadian unemployment rate declined, which means that the CAD will rise. Sell USD/CAD and just wait!

Suppose, Canadian unemployment rate fell, and USD fell to CAD from 1.250 to 1.236. Trading $100 with 1:3000 leverage, a trader could have made a profit of $3398.

2- Technical Analysis:

'Technical Analysis in Forex Trading' Simply watching and analyzing Charts. Charts describe the high and low prices of Forex Pairs. watching graphic charts you can easily analyze and trade on short term or long, charts are of different timings; 5 min to 1 day. mostly people watch and trade on 1 hour candle chart or 4 hours. Candle chart timings means what happens in that hours, and what you have to decide to trade.

Simply, if you candle is on high you will sell pair and when on Low you will buy pair. Place small take profit according to Market Sessions and Fundamental Analysis. you will got the Profit.