Forex trend is an integral concept of technical analysis that provides information about the general direction of the market. A trend can either be a long-term or short-term, depending on economic, sentimental and other fundamental influences. Trading along the trend is one of the safest ways to trade and a great forex strategy for maximizing profits. In theory trading with the trend is the classical remedy for trading profitably.

Like any other type of investment, currency trading has its inherent risks and potential for profitability or loss and knowing how to mitigate these risks goes a long way in determining your own currency trading profit or loss. Foreign exchange trading is when you attempt to generate a profit by speculating on the value of one currency compared to another. Foreign currencies can be traded because the value of a currency will fluctuate, or its exchange rate value will change when compared to other currencies.