Forex is a market in which traders get to exchange one country’s currency for another. Currencies in the marketplace work in pairs, with investors buying, selling and trading currencies based on their current and projected strengths. For instance, someone purchasing the USD against Japanese yen hopes that the dollar is stronger. If he’s right and trades the yen for the dollar, his will make a profit.

Watch and research the financial news since it has a direct impact on currency trading. The speculation that drives prices up and down on the currency exchanges tends to grow out of breaking news developments. Setup an alert from the major news services, and use the filtering feature of Google news to act fast when there is breaking news.

After choosing a currency pair, research and learn about the pair. If you spend all of your time studying every possible pairing, you will never …