The regular movement of the forex rate affects everyone regardless of whether you are travelling to a foreign country or buying an item online. Every commodity is affected by the economic law of supply and demand and the forex rate is not any different. The demand and supply of a country’s currency is reflected in its foreign exchange rate.

As FX traders we are always trying to optimize our trading plan to improve overall profitability and consistency. We gain an edge when we put the odds in our favor by increasing our batting average (win loss %) and increasing our average pips on a winning trade while decreasing our average pips on a losing trade.

The problem lots of new traders to FX have is that they are used to single security trading. Like Gold, Crude, S&P. Looking at a chart is really the best way to trade those markets. But in FX, every trade is a relative value trade. So being long one currency and short one currency presents additional challenges to just looking for a setup on a chart. I can teach an 8 year old to read a chart. But to look for the best chart on a currency pair is the challenge. You need to consider your premise.