The United States is a superpower with a superpower currency to boot! Its currency, the US Dollar, is clamored in every place around the world. Even in a hole-in-the-wall money exchange stop, the US Dollar seeks a place in the pedigree of cross rates bulletines.
But for smart Forex traders, they know that the US Dollar is not the only currency where money is power. They have learned how to delve into the Japanese Yen and the European Euro among others. Basically, if one is going to be engaged in Forex trading, better try out the other currency samples and widen one's currency portfolio. The US Dollar will not always be the darling of the world's central banks. [As can be seen right now, where the US presidential elections is specifically affecting the value of the green buck.]
However, for first-time Forex traders, trading US Dollars with the local currency is probably a safe way to start. After all, the local currency is needed for one's everyday transactions; and the US Dollar is still strong relatively (most probably) to the local currency. [Without the trading rate is already 1: 1.]
The most important piece of information for all Forex traders is the local currency cross rate. A simple usage of the cross rate is one can compare the value of a currency from let's say, last month's to this month's rate. One can see how much local currency one has earned for every 1 USD as, for example, the Canadian Dollar.
In this way, one can know which currency is worth putting one's money into. Remember, the US Dollar is not always the darling of the central banks. There are other currencies that offer better value for the local currency.
According to Citibank, this is the simplest way to lease against the pending depreciation of the US Dollar. Be aware of how other departments are performing!
But, before diving into Forex trading, here is, in my own opinion, the number one tip one should first adhere to-
Have a system.
Whatever happens, a personal trading system will greatly help in making fast decisions. Although the market is reliably steady, a personal system will prevent the trader from making rash decisions. In this very fast market, there should be no space left for blaming. Like "I should have done this or that".
To have a specific system, a suggestion purely-better invest in a Forex training ground first. That's step one for the first-time trader. Or at least read everything about Forex trading. Education is the key and then the strategies and systems and quite, the big bucks, will follow.