Forex Analysis

Forex means Foreign exchange currency market or FX. Forex is based on different countries' currency and this is the market of 3 trillion dollars daily and it is the most liquid market in the world. It has various aspects and good for making money but only when you are smart enough or a fool. There is no middle level in this market to play. It is recommended that you should invest from your savings not from your earnings because sometimes you can lose your money in just few minutes or even seconds. So you should calculate your risk before trading. There should be good money and risk management. In Forex there are many currency pairs like GBP/USD, EUR/USD, AUD/USD, Yen/USD etc.
GBP= Great British Pound
USD= United States Dollar
EUR= European currency
AUD= Australian Dollar
YEN= Japanese Yen
CHF= Swiss Frank

All you have to do is just make a trade. Buy one currency and sell other one. For example if you are taking interest in GBP/USD and you think that GBP will depreciate or appreciate against dollar then you buy or sell GBP against dollar.
There are two ways to forecast the market,
1) Fundamental: Which include Interest rate of the country’s economy, inflation rate, consumer confidence, political situation etc
2) Technical: Technical analysis is that in which you have to see the market behavior and forecast the future. Some people say that it is a branch of fundamental but without technical fundamental is nothing but in my opinion you should both fundamental and technical because what I think that fundamental proves the technical.
Risk Management:
In my opinion, you should calculate your risk. How much money you can lose in one trade? And what is the possibility to get worse against your expectations. You should know this.
Money Management:
Money management in Forex is necessary to be a good trader. Good trader is a person who has the ability or dare to close his/her trades in loss. For those who are beginners, I suggest them to use 1000 as lot.
For example: You decide to trade then you must be so disciplined or in other words, you must control your emotions. A trader should draw a plan, which will help them to play in Forex Market. First of all, if you are buying a currency then you shouldn’t sell it at the same time. It shows, you are not confident enough on your opened trades which are so risky. Second thing, try to use stop/limit for immediate entry or exit. It will help you to not lose big money. A trader should try to play with stop limits. Suppose trader decided to make a trade for 20 pips profit, then s/he should exit the minus 10 pips if market goes against your expectation. Third, you should know what your daily target is. Like the inflation rate of a country is 5% and a trader think, if he is not going to make big money but he will try to get net present value of the future value. The monthly target should be 0.42%.
Here is the little example
Trade Lot: 1000
You analyzed the market and going to make a trade and decided to buy Pound against Dollar.
Set the entry limits, stops and closing.
20 Pips Profit $2/
10 pips Loss $1/
20 pips Profit $2/
20 Pips Profit $2/
10 Pips Loss $1/
20 pips Profit $2/
10 Pips Loss $1/
10 Pips Loss $1/
10 Pips Loss $1/
20 pips Profit $2/
Above given example shows, trader have earned $10 and lost $5. So, the net profit is $5 dollars.
Leverage
Leverage is for professional. Leverage is future borrowing. Leverage can be defined as a use of various financial instruments or borrowed capital, such as margin, to increase the potential return of an investment and why I said, Leverage is for professionals because if you are trading with high leverage that makes your usable margin less. So, be aware of it. The key of forex is usable margin and used margin. A trader should keep an eye on it.