document.write(‘(function () {try{VCM.media.render({sid:51426,media_id:6,media_type:8,version:”1.0″});} catch(e){}}());’ + ‘ipt>’);

Have you been hearing the latest buzz about this thing call Foreign exchange trading, or better known as spot Forex trading. This is all about trying to actively go in and out of this market for short-term profits. This market is the biggest of all other markets combined, so you never have to worry about liquidity at all. And shorting a currency pair can be done as easily as going long, there are no rules for this like the stock market.

You definitely see a lot of investors betting on the major currencies these days, the Euro, and the United states dollar are in the top for big speculators. The reason for all this new volatility is because the world has so many financial head winds, debt is high, unemployment is high it seems like the smartest people in the world can’t control the economy or even stabilize it. So for a smart trader they have an opportunity to rake in some fast profits if they get on the right side of the market, if they don’t they lose big time.

The reason the currencies are called currency pairs is because they are matched up against each other, they are in a constant battle for strength against each other. Example the Euro and the United states dollar looks like this EUR/USD. This pair has the most volume and the tightest spread, the spread is the difference between the bid and ask price. The tighter the spread the more profit a trader makes.

The trick to winning in this market and all other markets is using technical analysis to create a methodology to enter and exit the market with a low draw down, another words when you enter you don’t want the market to go against you very much, you should be using small stop losses every time you buy or sell in all markets.

To come up with a formula for creating your own custom Forex signals is going to be your biggest challenge, you will have to combine some indicators with a personal instinct for the market. The cool thing is you can develop this for free, and practice for free live in the market with no risk to your real money. Once you see some positive results you can put some real money to work for you.