Forex is About
Forex is an exchange system where money is exchanged and high risks are involved in every trading. Through this process, a trader needs to earn profit efficiently if any kind of mistake may be occurred a large amount of loss may happen to the forex trader. Money floating currencies prices may be changed for various problems including political interaction or internal and external communication. You can earn money with this method though this method is less profitable, high profit can be gain from using this method. Suppose we can provide you an example, Buy silver from other countries when they receive less, sell funds to other countries when they get up. Changes may occur in some cases, what type of waves, economic and political changes that are very simple just you need to keep your patients and keep all funds maximum time until getting targeting profit.
You can make this method to any country in the world. Because you do not have an Exchange fixed rate of currencies of the world. Money is now floating currencies and it may change at any time for any kind of political or other fundamental news. We can also provide you another example. If a war begins on Iraq, oil "prices must go higher. (You know that this war is happening in Asia also). If it goes on high oil prices, the currency money goes lower in most countries, with the exception of countries with oil resources. This is an economic term and to know about this properly you must keep a good amount of knowledge in economic and finance.
Look at this example:
1 war bigans in Syria
2 oil prices go back to top
3. Mount the Canadian dollar, the Canada has oil refineries
4 Japan Yen go lower because the Japan has not much source of oil
5. at this point purchase "Ellen Japan" (victory)
6 sell Canada dollar (win)
This is a very simple strategy, but this is very high profitable that can provide all forex traders more profit that they can able to earn through other currencies. Firstly a trader need to learn all currencies pairs so that they can take the decision when he get any kind of high impact news that are published and which news can impact to exact currency. This is the major important things that a forex trader must carry to prevent the major losses that may occur most of the time during the Forex trading.
Other information:
we usually go the money 4 pairs,
Most importantly:
Euro / United States dollar
United States dollar / JPY,
The pound sterling / the United States dollar,
United States dollar / CHF
Important pairs: EUR/USD, USD/JPY, GBP/USD, USD/CHF, GPB/JPY, GBP/NZD, EUR/CAD, GBP/CAD, EUR/AUD, EUR/NZD, EUR/JPY, NZD/USD, AUD/USD and so on. You can able to cross any currency with your favorite currency.
When you will choose any kind of cross, must look up the current market situation. It will be better if you choose a strong currency against a weak currency that can provide you more profit.