Forex strategy trading is an amazingly lucrative investment to be involved in. It is the exchange of foreign commodities worldwide sold for a profit depending on what the market is operating with and the size of the lot.
Trading the currency exchange is not like the stock market where they are regulated by the SEC. In Forex most of the trading is done through online trading platforms and a network of banking brokers.
A big part of the wealth that is exchanges comes from only five percent of the market banks and the big boys.
The other 95% comes from smaller speculators who may have a few thousand dollars in their account to play with.
Without doubt there is a lot of technical jargon involved like, Fibonacci retracement, which tells you where the level at which a market trend will break, and fundamental analysis which simply means information you are fed over the news.
These sorts of terms intimidate a large number of beginner Forex traders, but trust me they are simple to learn and there is no reason why you can not understand all of them.
The main principle is to buy one currency at an exchange rate that will move up enough in value to be able to buy more of a currency which is worth less now because of the increased value all centralized around the US dollar.
The 0.0001 example I gave above is spot on for most of the major markets, but for the smaller ones sometimes the price might be measured differently.
I hope this article has been useful in enabling you to learn just how Forex strategy trading works.
To your success,
Jay Molina
Expert Forex Trader & mentor
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