Trading foreign exchange currencies

The main currencies traded in foreign exchange are: EUR/USD (euro/dollar), USD/JPY (dollar/Japanese yen), GBP/USD (British pound/dollar) and the USD/CHF (dollar/Swiss franc). So there are very few positions to take when compared to the 8000 plus stocks and bonds. Consider how many traders simply buy a forex signal service or system from a vendor and believe the marketing hype — that it will help them win or make them rich. These people trading forex usually lose due to a lack of confidence. One common way of losing is if you interfere with what your broker is doing on your behalf (as his strategy might require a long gestation period).