Forex Trading Basicsby Siam Luu
If you start to get confused about forex trading, think back to this basic tip: "Buy low, sell high." Easy to grasp, not always easy to practice. When befuddled with whether to buy or sell a designated currency, ask yourself "Which will go up?" Once you know that, you should buy the currency that will go up. For example, consider the currency pair EUR/USD. If you think the USD is going to go up tomorrow, that means it is cheaper today than it will be tomorrow. Thus, you should buy the USD or sell the EUR in this case today. Similarly, if you think the USD is going to go down, that means it is more expensive today than it will be tomorrow. Thus, you should sell the USD or buy the EUR.
Tags: forex trading