Forex trading is the buying and selling of currencies with the hope of making a profit. Forex is short for foreign exchange, which is a market where currencies from around the world are traded.
Kenya forex trading is based on two principles: demand and supply. The demand side of the equation refers to how many people are looking to buy a currency and the supply side refers to how many people are willing to sell that currency. When these two sides are in balance, prices stay stable. When demand exceeds supply, prices rise and when supply exceeds demand, prices fall.
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Forex trading is a popular investment option for those who want to make money quickly and easily. There are many different types of forex traders, so it’s important to understand what type you might be best suited for if you want to succeed in this market.
Here are the three main types of forex traders: swing traders, day traders, and trend followers.
Swing Traders: Swing traders are typically the most speculative type of forex trader. They aim to make short-term profits by trading within a narrow range of prices. They may also trade multiple currencies at once, which can lead to increased volatility and risk.
Day Traders:Day traders are typically more cautious than swing traders and focus on trading only one currency at a time. They may also use larger positions over time in order to make bigger profits. Day trading can be risky, but it also offers the potential for greater profits.
Trend Followers: Trend followers follow the trend of a particular currency or commodity and Trade only when they believe that the price is headed in the right direction.