The question is interesting, I will try to define it as much as I know about it, forex stands for (Foreign Exchange), this is the simple definition of this word, now I will not go in the depth of forex, but we do forex to earn money, forex is not an easy business to do, so many people say that forex is a job, so you should completely remove this misconception that it is a job, it is a business and every new trader should know this thing. This market is high risk market, but when you take high risk then you will see high returns, if your trade is successful, but it doesn't means that a new trader should take high risk, a new trader should learn all the relevant things that are very much necessary.
Most people think that money management is the key to success, some think that good indicators indicate you where to open an order and where to close, so indicators play the main role, while some people think that good strategy is the main key to success. But I would like to tell you all that success is not based on one key only, there are several keys that a trader should have to open with the combination with. There are a lot of things that a trader should know and learn. Continuous learning is necessary if a trader want success.
If you see the forex trading then you will find it just buying and selling of the currencies, but when you go in the depth then you will find that there are so many things that are needed to do forex trading, so don't ever underestimate this market. There are so many things that are needed in this business. I would like to mention some of them here:
1. Good money management.
2. Good risk management.
3. Use of meta traders. (MT4 and MT5).
4. Knowledge of history of currency pair.
5. Practice in demo account.
6. Good trading strategy.
7. Knowledge of hedging.
8. Understanding market trend.
9. Use of pattern, (bar, candle or line).
10. Discussion with experienced traders.
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