What is forex and how to work there

What is forexMore than ten years ago, in the already almost forgotten by us 2003, almost exclusively specialists in the financial sector of the economy knew forex trade. A specialist like that was known as “Forex trader”. Then the foundation of the current system was laid (we mean tools for operating and administering accounts, etc. through the Internet) on all types of exchanges: stock, commodity and, of course, currency. It was then that the latter type that gradually became more and more popular and accessible. And the faster the Internet access was developing, the more people came to the broker offices to invest in forex. Another important direction that made forex as we know it today was the development of e-commerce or payment systems. All this in general allowed nowadays to work on currency exchanges not only from a stationary computer, but also from mobile devices such as tablets and smartphones. And most of the innovations were made by one company (reviews on the web are the best reminder of the company’s iconic history).

Important notices on forex strategies

To build effective forex strategies you need to rely on many tools. The key ones are forecast and forex indicators. But if from the first points everything is more or less clear (which means the word “forecast” can guess even the preschooler), then what are indicators from forex – very few people know from people “uninitiated”. And this, in fact, is also very simple. Indicators – a set of trading indicators, the behavior of traders, etc., by which you can determine the main trends of the forex market at the moment. It is on the analysis of indicators that any forecast is built, and therefore the strategy is also built.

What a forex trader should know

There are a lot of similar indicators, and it is impossible to say exactly which are the best forex indicators, and which are the worst. All of them are important and they are all needed, only they are applied in different ways. Their application depends on the trader’s chosen strategy of behavior on the foreign exchange market. So, they are divided into these types:

  • Trend indicators (needed to determine the direction of price movement or, in other words, the trend).
  • Oscillators (they work in advance and indicate a price deviation from the average, which allows an immediate forecast, but because they work automatically, it is not recommended to rely exclusively on them).
  • Psychological indicators Forex (show the mood of traders at the moment).