Forex Trading Advice

Forex Trading Advice

The foreign exchange market, or forex market, is a global marketplace for the trading of currencies. It offers a number of advantages for retail investors, including high liquidity and low-cost leverage, which can allow traders to profit from fluctuations in currency values.

Money

Forex trading is a great way to earn extra cash. It requires a relatively small initial investment, and the returns can be substantial. However, it is important to understand the risks and rewards before making a decision to trade.

Trading Styles

There are many different trading styles, and some strategies can be more successful than others. For example, a trend following strategy will align your currency trades with the general market direction.

Correlations in assets

Knowing the correlations between certain assets can give you a leg up on the competition, helping you spot potential trades that might be profitable. Some currency pairs, like the Canadian dollar and oil, are positively correlated, meaning that they tend to move together.

Trading sessions

The forex market is made up of three main trading sessions – the European, American and Asian sessions – which take place at different times throughout the day. Each session has unique characteristics that are based on the country and the companies that are exchanging currencies within it.

The best time to trade is during the overlap between the London and New York trading sessions, when liquidity is at its highest level. This occurs around 19:00 to 22:00 GMT.