Forex Trading

[Eugine]

Forex trading is typically done through a broker or market maker. As a forex trader you can choose a currency pair that you expect to change in value and place a trade accordingly. For example, if you had purchased 1,000 Euros in January of 2005, it would have cost you around $1,200 USD. Throughout 2005 the Euro’s value vs. the U.S. Dollar’s value increased. At the end of the year 1,000 Euros was worth $1,300 U.S. Dollars. If you had chosen to end your trade at that point, you would have a $100 gain.

[Hosannakk]

Traders always push prices to far to the upside, when greed is present and to far to the downside, when fear is present. You will see short sharp price spikes on any chart which reflect these emotions. These price spikes never last long and prices soon come back to more realistic levels.The aim of the swing trader therefore is - to sell into greed and buy into fear and make profits. Now let's look at some simple steps you can follow to do this. We will look at how to do this, by selling into greed but the same principles apply in an oversold market.