Back when I first started trading, over two decades ago, we did not have access to free real-time price charting platforms, low commissions and low per-point markets. In addition, we could only trade during the day as there was no such thing as extended-hour trading.
Today, we have it all!
The FOREX market is a virtual 24-hour market. Here in the US, it runs from Sunday evening to Friday evening. So except for the weekend, you can trade at anytime from anywhere.
FOREX online accounts are easy to find and open. Most provide free electronic price data and charts in real-time. Some offer the option of reducing the pip size so that even very small accounts can trade without big risk exposure.
The key to making money trading FOREX is to first learn all you can about how the FOREX market works. For that you only need to do a search or read the training materials provided by most brokerages.
Next, setup your account and trade using only the demo account. You want to get used to the process of trading, and you want to make sure you familiar with your platform on how to enter and exit manually, as well as setting up entry and exit stops so that you can step away from the platform and know your trade is protected.
Next you need to learn an effective method for determining where to enter and exit. In my opinion, the first method you should learn is how to determine the trend.
FOREX markets tend to trend often. This stands out as different then most other markets. Once you lock into a trend, you can ride it for all its worth.
So how do you determine trends? One method is taught by W. D. Gann and is called the Trend Line Indicator. I recommend that you search on that phrase and learn this method of identifying the trend pattern.
Next, once you have learned about trends and how to use the Trend Line Indicator, you need to learn about support and resistance. In order to make money trading FOREX, the key is to get into a trend at the end of a trend correction.
A trend correction is a move that is counter to the trend. If the trend is bullish, it is making higher swing bottoms. Each of those swing bottoms happen to be the end of a correction against the trend. By entering when those higher swing bottoms are formed, you are entering at the lowest risk price level and giving yourself an opportunity for greater profits.
In a bear trend, the end of corrections happen to be where the lower swing tops form.
What you need to learn is how to determine when a correction is likely ending. One way is to calculate support and resistance. To do that, you simply can use Gann or Fibonacci ratios of the trend move prior to the correction.
For example, if the market is bullish, when a correction starts and prices are moving down against the trend, take the distance of the prior bottom to prior top in points and multiply it by your ratios. For Fibonacci ratios, look for prices to correct about 38.2%, 50% or 61.8% of the prior move up. If you find the correction holding at any of these levels and start to turn up again, you may have found the end of the correction.
For Gann ratios, they are similar. You divide the prior range (in a bull market is from prior low to prior high) by 3, 4 and 8. Dividing by 3 gives you levels in thirds, such as 33.3%, 66.6%. Dividing by 4 gives you quarters, such as 25%, 50% and 75%. And by 8 gives you eighths, such as 12.5%, 25%, 37.5%, 50%, 62.5%, 75% and 87.5%.
There is much written about support and resistance. Learn as many methods as possible about this subject if you really want to make money trading FOREX.
To increase your odds of finding the end of corrections to enter trades from, you should include a TIME based method for timing. While prices usually will make bottom or top at some support or resistance level, sometimes it stops at one support level only to break through the next day or two to the next level, and so forth. This can be frustrating at times.
Using a TIME based method along with your price based method can help you narrow down where and when the market is likely to turn again. For this purpose, I use FDates (turn dates) provided through my membership. However, if you are wanting to learn to calculate these yourselves, I highly recommend that you study the works of W. D. Gann and to also learn Fibonacci methods. These methods will help you move toward a more time/price way of timing that I have found to be the best way to make money trading FOREX today!