Forex Trading Advice

Forex Trading Advice

Money: If you want to make money trading forex, be sure to understand the risks involved. Unlike stocks or ETFs, there are a number of different macroeconomic factors that can impact the price of currencies. Things like GDP growth, debt levels, and interest rates are all important considerations in forex trading.

Advantages: Forex is a global market where currencies are traded 24 hours a day, seven days a week. Its high liquidity means that spreads are low and trading costs are relatively affordable.

Trading styles: Traders can choose from various trading styles including scalping, long-term investing and position trading. Once you’ve determined your style, start testing it with historical data and live trading to ensure that it is working for you.

Trading sessions: The forex market has three trading sessions – the Asian session, the London session and the New York session. The London session is the largest of the three and accounts for more than one-third of the volume traded in the market.

Trading is all about risk, so be sure to set a risk/reward ratio that is appropriate for your trading capital and risk tolerance. Also, always remember to protect your trading capital with stop losses and limit orders.