Have you ever wanted to buy and resell something in the hopes of making a profit? If you change that ‘something’ to ‘currencies’, then you’re in the world of forex trading.
The forex market is the largest financial exchange market in the world. It is open Monday through Friday, 24 hours a day. It opens when the sun rises in Australia and then closes for the end of the day in the United States, and then repeats. Now, the tricky part about this is that currencies are ever-fluctuating. If many are being sold on the forex market, this could give people the sign that there is little faith in the currency and, therefore, it drops. However, it’s not just the forex market that impacts the value of currencies; there are many socio-political, economic and environmental factors that contribute to this.
The same goes for presidential elections or governmental trades and deals – all these factors influence the value of a currency, which is why it is crucial for you to stay updated with as much global news as possible.If you’re a new trader, you’re going to want to avoid some of the typical rookie mistakes. The first would be to never invest too largely in your first month.