A little help in when to buy or sell

Many get confused as to when to buy or sell a currency - so I took as an example the euro and dollar pair. Dont worry - I was confused for a while too.

EUR/USD
In this example Euro is the base currency and thus the "basis" for the buy/sell. If you believe that the US economy will continue to weaken and this will hurt the US dollar, you would execute a BUY EUR/USD order. By doing so you have bought Euros in the expectation that they will appreciate versus the US dollar. If you believe that the US economy is strong and the Euro will weaken against the US dollar you would execute a SELL EUR/USD order. By doing so you have sold Euros in the expectation that they will depreciate versus the US dollar.

Hope it helped

In order to know when to buy and sell in forex it entails picking the right direction to trade by following the market direction of currency pairs either bullish or bearish trend. By following a particular currency trend you are banking on the fact that the currency continues its existing direction and you are taking in profit by following the market direction.