Buy low, sell high!
Learning to buy a currency pair when it is low or cheap and to sell it when it is high or expensive is the essence of successful forex trading. Of course, you can also sell high and buy low to make a profit. Either way, if you do this consistently when trading forex, you should find your trading account balance increasingly comfortably. Admittedly, it may take some time before you develop a good sense for when a currency pair is undervalue or overvalued, but attaining that valuation awareness is a key part of becoming a skillful forex trader. Swing traders are especially astute in this regard, and they often use momentum oscillators like the Relative Strength Index or RSI to inform them of market extremes. Such technical indicators can show when the market in a currency pair is oversold – and hence low enough for buying — or when it is overbought and high enough to be sold.