Understanding Forex

With the forex market we can make a profit just like in the stock market, but instead of buying shares, we buy currencies. yes we buy money. let me explain how it works. EURUSD
eurusd: this is a currency pair. let say the price is now 1.3400. this means for every EUR(euro) i buy, i have to pay $1.34. lets say i buy 100 euro's. 100 x $1.34 =$134
the next day the price is 1.3500. if i sell the euro's now, i wil get 100 x $1.35 = $135
that is $1 profit. it seems like nothing, but trust me, in the forex market we don't buy 100 euro's, we buy much more than that. the best thing is IT IS FREE. yes!! you don't have to pay the broker anything, they make their profit with the spread, that is the difference between the buy and sell price. you can start with just $100 and make some money. Unlike the stock market, the forex market does not react on news of companie's, they react on political news, and speculation by the big traders. If there is some news comming out, every body will know it at the same time, unlike the stock market. This is why huge profits can be made, BUT we have to learn "the rules of the game".
Just like in any other profession, you have to get educated first and train youself to be successful. The same goes for forex trading. you have to educate yourself first, and then train yourself to be profitable and consistant every month to make money.
Just like the stock market, risk is involved in the forex market. You can never tell 100% which way the price will go, up or down. To increase the ods, we analyze the charts and watch out for financial news. example: If the price of gold rises, the value of the USD drops, so the EUR will go up against the USD.