Before starting forex, you must learn about some important words like Broker, Pip, Trend, etc.
Forex Broker : Forex brokers are some companies. They place your trading order to the forex market. Traders trade using them because they can't place order directly to the forex market.
Pips : Pip is the smallest ammount of currency. Like 1.4445. Last digit 5 is known as pip. If it becomes 1.4446 then we will say that market gone 1 pip up and if it becomes 1.4444 then we will say that market gone 1 pip down.
Trend : Trend is the most important part of forex trading. If you can understand market trend then you will be a successful trader. Trend means the pre-notice of market status. There are two kinds of Trend. See below---
Trend Up : When the market is going up it called trend up. If you can understand that market will go more up then you can place a buy order. But don't place an order at the top price. Wait a bit and place order when it downs little bit. See the picture below---
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| Trend Up |
Here is a chart of trend up. Point 4 is the top of market. You should not buy at that point. When the market comes to point B, you can place an order. You have to understand the trend. If you place sell order at B point you will loose your money. And don't want to earn a lot. Close order after gaining little profit. Because market can change at any time.
Trend Down : When the market is going down is known as trend down. Place sell order when the market is going down.
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| Trend down |
It is just opposite of trend up.
