Forex, a shortening of “foreign exchange,” is a currency trading market in which investors convert one currency into another, ideally profiting from the trade. For instance, an investor from the U.S. who has purchased the Japanese yen may be seeing the yen getting stronger as compared to the U.S. dollar. If the dollar happens to be stronger, there’s a lot of profit in it.

While all markets depend on the economy, Forex is especially dependent. If you are interested in trading on the forex market, you should first educate yourself on all aspects of world currency and fiscal policy. Without a firm grasp of these economic factors, your trades can turn disastrous.

Gather all the information you can about the currency pair you choose to focus on initially. When you focus entirely on learning everything about all pairing and interactions, you will find yourself mired down in learning rather than …