Forex direction and how you could benefit from it
Knowing forex trend will put you in the right side of forex direction
There are mainly three types of forex trend:
If trend is up, forex direction will be coming down in a pattern of higher highs and higher lows. Here, our preference is to trade with forex trend, direction will be to assume up by going long.
Likewise if trend is down, forex direction will be moving down in a pattern of lower highs and lower lows. Remember, we always want to trade with forex trend, direction will be to assume down by going short.
FOREX TREND AND DIRECTION IN DETAIL
Prices can either rise or fall. In trading forex, you could trade in either direction (either buy or sell).
Going long or buying
- If you think that EURGBP is going up, you could buy EURGBP. The action of buying is called going long
- You will make money if price is higher than your buy price
- You will lose money if price is lower than your buy price
Going short or selling
- If you think that AUDUSD is going down, you could sell AUDUSD. The action of selling is called going short
- You will make money if price is lower than your sell price
- You will lose money if price is higher than your sell price
- In forex trading, we make money by getting the difference between the price we open and close the trade
- We can easily long or short in forex without owning existing position. To sell, we do not need to have any existing holdings in any currency because we are merely making money from the difference between our opening and closing price
TRADES & LOSING TRADES
"Live" actions and reviews from our students directly from our social media accounts. We don't tweet winning trades only. We tweet losing trades as well. It's just that we have more winners. Follow @terraseeds in twitter for live trades and forex ideas.