Foreign currency exchange market is the largest financial market accessible to retail investors. It is open 24 hours for five days a week and, as such, attracts investors from all over the world. For beginners, like any other financial market, trading on Forex can be a bit intimidating. It has its own set of rules, which you should learn in order to successfully trade. You should carefully choose your strategy and then apply it consistently. You can focus on simpler indicators such as moving averages that will help you recognize market signals.
- If you are not good at analyzing charts, you don’t have to necessarily have that to trade.
- There are many strategies and principles that you can use in trading like the carry trade.
- There are some strategies that are perfect for beginners, but might not be good for long term trading.
“Carry trades focus on finding higher-yielding currencies and opening the long positions for them against the lower-yielding one. From the interest rate differentials, the trader can earn rollover on a daily basis.”