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How to trade Forex

Written by Martin Grippen. Visit also my Google Plus site ,Facebook site. and my blog about Forex.

The most liquid market in the world is the foreign exchange market also known as the Forex market. The market is open 24 hours a day 5 days a week.

Traders in the market are trading currency pairs and earn a profit when the currency prices rise. Changes in the prices are called pips and the values of the pips depend on the invested capital.  

The preferred currency pairs traded in the market is the EUR/USD, GBP/USD and USD/JYP. 

In the graph is the EUR/USD illustrated. The curve can be illustrated in different time periods. It is an advantage if the 5 minute chart shows an uptrend and the trader want to Identify if the trend also is a trend in the long run.

The curve is illustrated as a line but could also be illustrated with candle sticks. If the candle stick is green the price is moving up and if the candle stick is red the price is falling. Is a price rising is the market bullish and if the market is falling is the market bearish

Some of the success criteria a trader has to meet if he wants to have success in the Forex market is to have a trading strategy. It is a plan that tells the trader how to trade. A plan could consist of a Stop/Loss level and exit point in a trade. 

Some traders trade with indicators. It helps them to determine the trend direction. It also helps them to determine if the market is in an over-bought or in an oversold condition. Indicators are easy to use when the trader first has learned how to use them. A benefit using indicators are that the trader learns how the currency curves develop as he has to study the curves. The reason for studying the curves are that he has to watch the criteria for using the indicators are met for entering a trade.

An example of a trading strategy or plan with indicators could be the Bollinger bands as a primary indicator and the stochastic as a secondary indicator. How to trade with the Bollinger bands and stochastic strategy is described in this article.

Some of the indicators PLUS500 offers are described with links on the front page of this site.

The title of this text was how to trade Forex. On my blog is a blog post describing step by step how to enter a trade using the trading platform PLUS500. The trade is a share but it also illustrates how to trade Forex.

Want to trade at PLUS500? Just click on the trading area you are considering trading in for more info 




Trading CFDS in Forex, stocks, indices, ETFS and commodities has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to your investment in the CFDS in Forex, stocks, indices, ETFS and commodities market. Don't trade with money you can't afford to lose. Your success depends on your background, dedication, desire and motivation. Content on this website is for illustrative purposes only. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.