The truth about forex trading is anyone can do it. It is not like the stock market where your taking a chance a certain stock will rise based on a companies outlook for the future or historical outlook. Do not get me wrong there is a deep technical learning process for a person to understand how to trade within forex however it is a different learning process than the stock market. Many people think it is similar to stock trading or if they found success within the stock market than it will translate over to the foreign exchange markets. This type of thinking is totally wrong.
Reading forums, articles, and opinions of others is great. They may advertise their success within the markets however the only real way to succeed is to have your own expertise. Many people are confused with all the technical data and jargon associated with forex and tend to lean on the opinions and expertise of others to make trades. This way of thinking is totally wrong as well.
Instead of relying on rumors or the opinions of others, people should be leaning on their own understanding of the markets to make trades.
Forex is made up of many different currency pairs such as the British Pound, US Dollar, Japanese Yen and more. Trading is done by pairing these currencies together and betting for or against what currency will be stronger or weaker in the future compared to the other. Many charts, indicators, and fundemental analysis go into trying to predict the future outcomes.
Many tools are available to help predict the future of the markets. These tools include charts, indicators, news on the economy, interest rates, and more.
Charts have 1 minute, 5 minute, 10 minute, 15 minute, 30 minute, 1,2,3, and 4 hr charts, 8 hr, 1 week, 1 month, 1 year, 5 year, and more of historical data helping to gauge what the markets will do in the future. Indicators include alligator, DMI, ease of movement, donchian channel, and a whole host of others. The fundamental analysis of the job market, interest rates, economy outlook, and more contribute to significant price changes within the markets as well.
The truth about forex trading with the charts, many indicators, and fundamental analysis is its not complicated as it sounds. Yes it is overwhelming at first however if you look at it as if you are learning the English language like the A, B, C's, then words, then sentences - than you will have a much more positive mindset going into learning what all of the terminolgy and data means.
Never stop learning. If you ever think you reached the mountain top of learning the foreign exchange than you are wrong in your thinking. Constantly learning is key to your long term success!