Forex, or Foreign Exchange, refers to the global financial market that allows individuals and businesses to trade currencies. It is the largest financial market in the world, with a daily trade volume of around $6 trillion.

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Forex trading involves buying and selling currencies with the hope of making a profit based on the exchange rate fluctuations between the two currencies. This can be done speculatively, as most currency transactions in the forex market are not for real economy purposes such as international trade or tourism.

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The foreign exchange market operates 24 hours a day, 5 days a week, allowing for constant activity, and the ability for traders to take advantage of market fluctuations at any time.

To participate in forex trading or “trade” one must have a clear understanding of exchange rates and the factors that influence currency prices.

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There are only two things you can do to make money in forex trading. You can either buy or sell a currency. When you “buy” a currency you are betting that the value of that currency goes up, so you can sell later for a profit; when you “sell” you’re betting the value of that currency will decrease in the markets. Everything in the world of finance is based on these charts; it works the same in stocks as well. Every stock has its own chart, every forex pair - gold, silver whatever you can imagine. In essence, the market can only go up or down and you can make money depending on which way you think the market will go.

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There are only two ways to analyze a chart in forex. You have fundamental analysis and technical analysis. Fundamental analysis involves looking at economic data and real world events, to predict price. Economic news events like FOMC, NFP, CPI, PPI, are all planned economic data events, news releases that have direct numbers given out to the public investing world by governments on specific times that directly move the chart up or down. In addition to this, there are real world events like wars, that can have an effect on international relations but can't exactly be quantified. 

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The second way to analyze a chart is technical analysis. Technical analysis is looking at a chart and trying to predict its future price based on its historical price. While we still consider fundamental analysis in our strategy we primarily focus on technical analysis here at ControllerFX. 

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So let’s jump right into it.

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