Analyze the values ​​and trends: Technical Analysis is essential to improve the skills

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To be able to predict the direction of the price of the currencies it is necessary that you make an analysis of their evolution helping you with graphs of values, looking for formations, signs of continuation or change of tendencies and using indicators based on mathematical formulas and statistics. On the Internet there is a lot of free documentation to learn how to do technical analysis and in fact many platforms of Forex brokers have opinions on them and also have free tutorials and guides for your disposition such as Avatrade Trustpilot. All this may sound very difficult at first but it is not. It is necessary to be consistent and disciplined in order to master it in a few months.

Be up to date with economic and political news: Fundamental Analysis

If you are going to invest in currencies, it is essential that you are up to date on economic and political aspects. This type of analysis, called Fundamental Analysis is usually done by investors with long-term strategies but also by traders who want to take advantage of moments of high volatility to earn money after the appearance of important economic news. For example, a good unemployment figure or an increase in the volume of exports can make a currency become stronger and investors decide to buy increasing its value against other currencies. In addition, a good recommendation is to consult an economic calendar with the most important economic news that can affect the currency pairs you are managing.

Take into account the correlated currency pairs

There are some currency pairs that have a direct relationship in their price movements. This means that they tend to move in the same direction or vice versa most of the time. For example, the EUR / USD and the GBP / USD pair are positively correlated since their trend is similar. You have to take this into account when opening positions in correlated pairs because on the one hand if the price increases in your favor it is true that your profits will multiply but otherwise the losses will be higher as well.

Conclusion: Build your own Trading system

Your goal as a profitable trader is to articulate your own betting system so that you can detect good opportunities and at the same time manage the level of risk that can be assumed. This is only possible with a lot of experience. So the best way to practice without risk is to consult thousands of different trading strategies, opinions of Forex marketing and open a free demo account to practice until you feel safe. Leverage is something like a kind of loan that the broker makes to its users to open positions.