How To trade Currency-6 Step

Trading currency is an attractive option for many people. The foreign exchange (forex) market offers 24/7 trading, unmatched liquidity, zero commissions and low account minimums. If you’d like to learn how to trade currencies yourself, follow these two steps:

1) Learn how to read charts
Trading forex is done in one of two ways, technically or fundamentally. Fundamental trading means you’ll be analyzing economics; technical trading means you’ll be analyzing charts. Which one you prefer, or what mix you prefer, is up to you. Regardless, you should become familiar with reading charts, if for no other reason than everyone else is also looking at them. As well, by becoming “fluent” in chart reading, you’ll be able to put together a trading system based on charts. This technical analysis guidebook is an excellent place to begin learning about charts.

2) Learn forex fundamentals
Once you’ve got the charts out of the way, you’ll want to learn about fundamental factors that affect currency trades. For an introduction on fundamental factors which affect currency trades, read this. You may never end up using fundamental analysis, but you should still know about it. For example, even the most die hard chart trader can be thrown off balance by an interest rate announcement.