Forex trading or foreign currency trading is now a trillion dollar industry that is used by traders all over the world 24 hours a day
. The big advantage of Forex is that it is open 24/7 and does not limit one to only trade when the market is open.
Probably the biggest advantage of trading with foreign currency is that one can open an account with as little as $100. A few years ago binary trading became legal and that simply means that you can trade on the open stock market directly online.
There are a few simple and reliable techniques that one should use to ensure you get profits on a consistent basis and make money. The most well-known method which has been used by traders for years is the simple saying "the trend is your friend".
What this means is that you should take a look at the last 48 hours to see how the stock or commodity or currency that you want to trade is moving. All brokers will enable you to access this info directly from your trading account and you will be able to select a currency and watch the trend move.
"The trend is your friend" means that when you see that the currency that you are looking at is in a specific trend of going up or down then you can usually make an accurate prediction about where it is going to go next. Although it is not a guaranteed trade the chances are very good.
When one trades a long-term trade then you are stuck with that stock and just hope that it goes up. But when trading Forex you can make good money whether the currency moves up or down. Down is called a Bear market and upward is called a Bull market.
The risk when looking at a specific trend of a currency is that it changes a lot and that is why it is so important that you watch the movement of the stock before you place your real money in. But there is another alternative and that is to trade with fake money.
There are Forex brokers online that will offer you a $10 000 fake trading account which you can use whenever you like to get used to predicting trends. This is a great advantage as you can then see for yourself exactly how good your predictions are.
It is strongly advised that if you are new to trading online that you take some time to practice with fake money. If you are able to use a specific type of trading and prediction that uses the "following the trend" method then there is a very good chance that you will make money with Forex.