Making money with forex?

Question

I just started playing with forex today, so it is likely I'm using flawed logic or don't understand it properly.

However, it seems to me that if you use a chart to track to fluctuations in currencies by the minute it is easy to pick up on trends and make money off of them that way?

Further, it seems like the currencies all fluctuate around a certain range (i.e. EU/USD around 1.5750 - 1.5725) couldn't you just buy on the low end of the spectrum (say 1.5728) and wait for it to go up to say 1.5735 (which it seems it will inevitably do) and sell? If you use leveraging couldn't you make a fair amount of money that way?

Thanks

Answer 1

I have also started new....I am learning these things.It will help me too

Answer 2

Yes what you are saying makes sense, however just as easily as you can make money that way, so also, you can lose a lot of money as a result of those downward fluctuations. I hope that your playing around with forex is only with a practice account and not for real. You really need to understand what you are playing with before you venture to risk your money. Never invest in anything with money you cannot afford to lose. Trading on the forex market is not meant for novices.

Answer 3

Yes, you are basically correct and it is quite easy to make money from forex based on trends.  

However, trends are not easy to identify unless you understand the market or you have a special flaw for spotting them.  This is where charts and software can help.  On hindsight it is always easy to see the trend but often it's not easy to see when a new trend develops and you may just be too late when you have identified it.