If you’ve had forex trading explained to you then you understand the importance of having a workable forex trading strategy. There are two different ways in which traders decide what their strategies will be; technical or economic indicators.
Technical indicators rely on trends so that traders use this information to decide when to enter the market and what currency pairs to trade. Economic indicators on the other hand, rely on factors such as inflation rates, unemployment, industrial production and other economic factors that can impact the strength or weakness of a particular currency.
Most forex traders use a combination of both strategies to trade in currencies as it provides the most accurate view of the market.
Forex Trading Practice
When you learn to trade forex the next step you should take is to open a forex demo account. This demo account will allow you to see the market in action and using fake money to make trades. This will give you a better understanding of trading forex and the strategies you will use.
Now that you know what forex trading is, you can get a free demo account and put what you’ve learned into action.