ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Forex Made Simple

Updated on March 8, 2019

It is frighteningly easy to come home, switch on the laptop, update your Facebook status, set up an on-line forex trading account and start buying and selling euros, pounds and dollars. The first you need to learn about the currency market is that it is very risky. You can lose everything you have invested. Just like Vegas, never invest what you can't afford to lose. The technical term for this is 'risk capital'.

Adopting your Forex persona

There are two methods of analyzing currency markets, depending on whether you are a 'numbers' person or an 'ideas' person. The 'number' person's way is called, 'Technical Analysis'. This involves studying historical charts of a currency's past peaks and troughs. There are special names for the boundaries above and below which currencies go up and down. The upper boundary is called, 'resistance'.

On the other side of the coin is the floor, or the lower boundary below which the currency does not sink below. This is called its 'support'. If that particular currency crashes through either its resistance or support, this is called, 'breakout', and usually signals a period of increased activity in that particular market. You look at your charts and spot when the graph starts to change direction. If you think a currency is going to increase in value, you buy while it is still low and then sell it when it goes up. If, on the other hand, you think it is about to embark on a downward trend, you sell it while it is still high, wait for it to go down and then stock up on some more while the price is still low.

The other method of analyzing the market, the 'idea' person's way, is called, 'Fundamental Analysis'. Select this option if you like to read a lot. Read about the social, economic and political drivers behind supply and demand. Read about the prevailing macroeconomic indicators like interest rates, unemployment and inflation.

Getting started

You've chosen your currency. How long do you want to hold your position - Minutes? Hours? Days? Next you must set your limits. If your currency goes up, when do you sell? If your position is a loser, how long are you prepared to hold out? Make these decisions and set your stops and limits accordingly.

Watch your back

Where there is cash, there are scammers. The currency exchange market is worth a whopping USD 4 Trillion a day. Everybody wants a piece and there is no reason why you shouldn't grab yours. Just don't be too greedy or impatient. If some comes along and promises he'll make you a fortune in a short time with little investment on your part, don't believe a word of it.

This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.

© 2019 KimberlyMartin


    0 of 8192 characters used
    Post Comment

    No comments yet.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)
    ClickscoThis is a data management platform studying reader behavior (Privacy Policy)