Regardless of whether the currency is growing in value or getting cheaper - there is always an opportunity to earn money on Forex!
How to trade Forex? Imagine that a country's national currency is an asset just like stocks, commodities or precious metals. The whole secret is to buy the asset cheaper and then sell it more expensive. You can also do the opposite, first sell more expensive and then buy cheaper. Regardless of whether the currency is growing in price or getting cheaper, there is always an opportunity to make money on Forex!
The main thing is to recognize the market trend correctly and in time. Economic news analysis, as well as paid and free indicators and automatic trading systems and signals will help you in this regard.
How it works by example
Forex currencies are traded in pairs, such as the Euro/Dollar (EUR/USD) or the British Pound and Japanese Yen (GBP/JPY). Forex trading is buying one currency and selling another at the same time. The exchange rate shows the value of one currency relative to another. For example, the USD/CHF 0.93160/0.93170 quote shows how many francs it would take to buy or sell one dollar.
Depending on the central bank's discount rate, time of day, government policy, bidders' expectations and many other reasons, currency exchange rates are constantly changing. For example, a forecast says that the Euro will appreciate against the US dollar (i.e. EUR/USD is rising). You buy Euro (open a position to buy EUR/USD). And then, when the Euro exchange rate has risen, you sell the Euro more expensive (close your EUR/USD position). The difference between the buy and sell price is your profit from Forex trading.
Risk Warning
Remember that Forex is a high-risk financial market. There are a lot of opportunities to make money in it, and your potential income is not limited in any way. But the risk of losses is also high. If you make a conscious and independent decision to become a trader, then, first of all, you should follow the basic rules of money management and risk minimization. It is not easy, but it is extremely important. Whether you are trading with a hundred dollars or millions of dollars.
Quality training will be the foundation of your success. Do not spare time to learn the basics of trading and practice on a demo account before you start trading Forex with real money. And always stick to the rule of never trading with funds you are not ready to lose.