Forex Foreign Exchange Systems

Forex foreign exchange systems allow you to make trading decisions: to sell or buy a currency for financial gain.

Self-made, these systems are just software that automates analysis of your trading rules, giving signals when to buy, sell, or keep out of the market.

The better forex systems also take into account money management, which means things like trading size, risk per trade, risk per account, and so on.

In fact, some more experienced traders say that most of their trading profits are based on good money management, which allows money conservation, so you don't get wiped out totally in one bad market condition, and can fight another day.

For the trading strategies themselves, there are two basic strategies: fundamental analysis, and technical analysis.

Forex Currency Systems - Strategies

Of the basic forex trading strategies, technical analysis refers to making trading decisions based on numerical information of the past prices, possibly taking into account other similar measures of past performance, such as volume.

Fundamental analysis refers to analysing the underlying economical conditions for trading decisions. These conditions include interest rates, trade balance, inflation, and their expected values.

Of course, many make their trading decisions based on a mix of the two, where for example, basic decisions are made on the prices of currency pairs, but these can be overridden by analysis based on economic news.

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