That means paying careful and consistent attention to what's happening in those economic markets. That doesn't mean you have to watch CNN all day.

What it does mean is that the more you know about the economies of other countries, the more you are going to understand the value of their currency. Since you will be trading one kind for another, these currencies have a relationship and can affect one another. And every country's money has a different value.

That means if one begins to go. There's a lot of countries, so it's a good idea to pick a few to start out with. That means you're trading one country's money for another country's money.

You can expand later once you have a handle on how trading works and how to watch trends using economic reports and forecasts. Mastering how currencies relate to one another is one of the most important tools for success and profits as a forex trader.

Your first step is to become a news junkie. A Quick Guide to Forex Currencies When you trade on the forex market, what you're trading is foreign currencies.

Familiarize yourself with them and begin trading.