Forex trading is the buying and selling of currencies from different countries, essentially trading the currencies against each other.
Individual traders or retail investors engage in this trade by means of speculating the future rates of various currency pairs. As such, these traders will buy or sell any currency pairs, whose rates are likely to go up or down, respectively, according to market forecasts.
It is important to note that as a retail trader, you cannot engage directly in the trading, but through facilitation by a forex broker.
Understanding the Forex Trading Strategies
A forex trading strategy refers to any method that you will use to predict price movements in the forex market.
Some of the common strategies that you can use include:
1) Price Action Based Trading
In this method, your trading decisions are based on an analysis of indicator-free price charts, commonly referred to as a “clean” charts.