Is Forex Trading Profitable in 2022?
Forex is a great way to earn a living by trading currency. You can work from home, and be your own boss. However, you have to understand how this market works. This article will go over the important things about forex so that you can become successful at trading currency!
Forex is not about predicting the market.
This is important to understand that forex is not about predicting what will happen in the future. Many people that get into this industry think it’s like gambling, where you must predict whether the market will go up or down. This couldn’t be further from the truth!
The real way to make money in the forex market is by understanding how currency pairs move. The movement of currency pair can be explained with an analogy:
Imagine you are at a football game, and the two teams are running back and forth on the field. For the most part they move randomly, except for one thing – whenever one team scores a touchdown, they immediately head back to the locker room.
People tend to go towards one team or another based on how well they are doing. If one team is winning, then people will bet on that team. Therefore, some people think that just predicting which way a trend might move would be possible, but this isn’t true!
You have to understand what causes currency pairs to move in one direction or another. This is where technical analysis comes in handy. A forex trading platform is essential in making forex trading technical analysis happen.
In order to understand how currency pairs work, you need a solid understanding of technical analysis. Technical analysis helps give you a good idea on when a currency pair is likely to go up or down! You can then use this information to help your trades.
Forex is a 24 hour market.
This means that forex trading is available 24 hours a day, 7 days a week! This can be great for people that want to trade, but it can also lead to some big problems if you don’t know how to manage your time properly. You need to be sure that you are getting enough sleep, eating right, and staying healthy. It’s also important to spend time with your family.
Forex market hours are different depending on the currency pair you are trading. Here is a list of the most common currency pairs and their respective opening times:
EUR: 24 hours per day (12pm in London to 12am EST)
GBP: 24 hours per day (12pm in London to 12am EST)
USD: 19 hours per day (12pm New York time to 11.59pm EST)
AUD: 22 hours per day (10am Sydney time to 10pm EST, 7 days a week!)
CAD: 22 hours per day (10am Toronto time to 10pm EST, 7 days a week!)
NZD: 22 hours per day (10am New Zealand time to 10pm EST, 7 days a week!)
It’s important to know which instruments are available during the times that you will be trading. These opening hours tend to stay relatively consistent throughout the year. However, during special events like holidays or news announcements, they can change. It’s important to be aware of these times so that you will know what instruments are open for trading!