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Forex is the trading of world currencies. It involves buying one currency and selling another simultaneously. So you could buy US dollars with euros, or British pounds with US dollars or Swiss francs for Japanese yens. The combination of currency used here is called a 'pair' and you'll always trade in pairs. Here are the hottest pairs - GBP/USD, EUR/USD, USD/CHF - they are the most liquid and the most profitable when you apply the strategies you'll learn in this training series.

The Forex 'market' is a 24 hour market because it doesn't happen via a centralized exchange like in the stock market. It is an over the counter trade that happens over the phone or through an electronic network. These are the trading times (GMT) across the world:

• Tokyo opens at 23.00 and closes at 08.00
• London opens at 07.00 and closes at 16.00
• New York opens at 12.00 and closes at 21.00

Of these the major dealing centers are at London and New York and account for around half the daily trading volume. This is why you'll see that the maximum action is from 7.00 to 21.00 GMT. And when you are an individual trader, this can have its advantages as well as disadvantages.

You can quickly react to currency moves as soon as they happen unlike in the stock market, which closes in the evening. You can enjoy an active market regardless of your geographical location. You can use different strategies for different markets based on its characteristics. On the other hand, alone, due to the time differences it is hard to take advantage of everything that's happening.

To profit, the best thing to do is focus on the spot market since it has the largest trading volume. Why is it called spot? Because the trade is settled instantly. Another aspect of the Forex market is the forward outright which locks in the price to sell/buy the currency at a future time. Your best choice is the spot market because that's where you see quick profits.

The most important things to remember before you step into the Forex trade are the following.

• Have a trading plan
• Have a money management system.
• Have discipline - lack of discipline means deep trouble. The best trading strategy without discipline could lose you money.
• Think coherently.

To be profitable in the short term you need strategies that have a good winning percent ratio. Predicting market direction on smaller time frames turns out to be more accurate. It's easier to speculate for the next few hours than the next month.

In the forthcoming parts of this training series, we'll focus on the most vital information you need to know to become a daily profit pulling Forex trader.

But if you're too excited to wait, you can find the complete Forex trading solution at Forex Trading Machine. Go now.