One of the most important things to understand in the Forex market is the way in which prices move
. Knowing this will determine what you do when trading forex. You have to be able to understand what's going on in the market in order to make rational decisions. You should be able to look at the price charts of the currencies you are trading and know what is happening with them. Prices move in two directions.
It can move up, which means it is rallying or it can move down which means it's consolidating. Price can also move sideways. This is often referred to as the price being stuck. You usually do not want to be trading a when the price is doing this. Based on the prices moving up down or sideways, will determine how you will make the trade. If you fail to understand these principles, you will lose all of your money. In an effort to make it up, you will lose more money. This is why it is so important for you to know this information.
One of things you should do is to practice reading online forex charts. Get a whole bunch of different price charts and drill whether or not the price is going up, going down or moving sideways. This should be one of the first things you need to learn how to do. In summary, the prices in the Forex market move up, down or sideways. Make sure that you know exactly what is happening or you will lose all of your money. The best thing to do is to practice reading the charts. If you do this you, will be well on your way to being a great success at trading the foreign exchange market.