How To Start in Forex Trading

Many investors know the stock market, they may also know about bonds and mutual funds. But only a few know about the foreign exchange market. Also known as Forex, this is where investors trade currencies.

If you want to start forex trading, your first job is to learn these three-letter currency symbols:

  • U.S. dollar (USD)
  • Euro (EUR)
  • Japanese yen (JPY)
  • Pound sterling (GBP)
  • Australian dollar (AUD)
  • Swiss franc (CHF)
  • Canadian dollar (CAD)
  • Hong Kong dollar (HKD)
  • Swedish krona (SEK)
  • New Zealand dollar (NZD)
  • South Korean won (KRW)
  • Singapore dollar (SGD)
  • Norwegian krone (NOK)
  • Mexican peso (MXN)
  • Indian rupee (INR)

Now, just like to stock market, you need to know which currencies are going up and which ones are going down. All trades occur as currency pairs. For example, when you are trading USD/SGD – then it means you are “converting” your US dollars into Singaporean dollars.

How do you earn? Well, when the value of SGD against the USD has gone up, then it means when you “convert” back to USD, you’ll have more money than before. Also, some look for and just use the best automated forex software out there in the market to make it all automatic.

Is it a good time to do forex this time? Our answer is always yes because somewhere out there, a currency is gaining value and all you have to do is find it. Additionally, there are many resources and strategies online that will help you find these currency pairs.

When you want to do forex trading, then you need to find a broker, and a stable internet connection. Then all you need to do is to study the market, or simply buy and use some of the best selling forex software online to automate your trades.

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