Forex, a shortening of “foreign exchange,” is a currency trading market in which investors convert one currency into another, ideally profiting from the trade. For instance, American investors who have bought Japanese currency might think the yen is growing weak. If this is the right decision then profit will be made.
Watch the news daily and be especially attentive when you see reports about countries that use your currencies. The speculation that drives prices up and down on the currency exchanges tends to grow out of breaking news developments. You need to set up some email services or texting services to get the news first.
Never trade on your emotions. Greed, euphoria, anger, or panic can really get you into trouble if you let them. It’s impossible to completely remove emotion from the equation, but if they are the primary driver of your trading decisions, you are in trouble.