Forex, a shortening of “foreign exchange,” is a currency trading market in which investors convert one currency into another, ideally profiting from the trade. For instance, an American trader can buy a the equivalent of a hundred dollars in yen if the yen is a weaker currency than the U.S. dollar. If this person is correct and decides to trade yens for dollars, he or she will generate a substantial profit.

Make sure you pay attention to the news, especially news from countries in which you have invested in their currency. Currencies rise and fall on speculation and that speculation usually starts with the news. You should set up digital alerts on your market to allow you to utilize breaking news.

Use two different accounts for trading. One account is your live trading account using real money, and the other is your demo account to be used as a testing