Before Getting Started
Traders are divided into two types - fundamental and technical.
Trading decisions in the foreign exchange market are typically made based on an analysis of the market and the forces that govern them. Based on the kind of analysis that they use to make their decision, traders are divided into two types - fundamental and technical.
Fundamental analysis deals with how macroeconomic factors like international trade, interest rates and so on affect the market, thereby affecting the currency exchange rate.
On the other hand, technical analysis uses various indicators and charts their progress to forecast how market forces and thus the exchange rate will behave. It is essental to understand these very important aspects of Forex trading.
After having understood the basics of Forex trading, you may decide to trade in the foreign exchange market through a broker or by handling the transactions yourself. Either way, you will need to be aware of the different tools that are available to you for trading in the Forex market. You should also have a realistic trading strategy - this would mean understanding the kind of risk that you are willing to take and how much profit a certain trade should bring you.
A Quick Summary: