Basically, foreign exchange trading or simply FOREX trading is just the buying and selling of the world's treaties. Money today is not the same as money tomorrow. Money has time value. The worth of a currency can go up or down.
There is one secret that FOREX traders live by. And it is buy low, sell high. Do not ever forget that rule.
However, the trick is to know when to buy and when to sell. In FOREX trading, everything is by speculation. Sure, there are graphs to aid decisions. Business pages also give out strategies for the day. But the next step is always a guess based from the previous actions.
FOREX traders like to call their speculations as smart guesses. Typically, patterns on the currency values can be derived from how the politics of a specific country is running.
For example, if there is a plan to oust the president, most probably the value of that country's currency will go down-how low, we do not know. Usually. Because there are still a lot of factors to consider why a currency is going strong or not.
Improvement on the tourism sector can mean more foreign investments. This will be good for a particular currency, but this may affect how the other countries are doing.
These are just trade scenarios. As the cliche goes, one man's medicine may be another man's poison. One country's good tidings may be another country's, well, downfall.
That is why in FOREX trading, another secret to live by is to be aware of the national news in the country concerned.
Current events have a say on the economies of a country. Money makes the world go round, so to speak.
But, if one is really serious in approaching their first million in FOREX trading, another secret is-it might be a good idea to invest in a FOREX trading training school. Learn from the pros and conquer the world afterwards.
Let me leave you one last secret I learned from my father. If everyone is going in this direction, go the other way. This applies to FOREX and other areas of life. You will not ever get rich by following the crowd.
Beside buying low and selling high, follow that last secret and you might just join the ranks of the millionaires and billionaires.