Originally published on Best Stocks Source: Getty ImagesForeign exchange (forex) focuses on trading currency pairs – purchasing one currency against the other. It can be an attractive venture to many investors as a highly liquid and volatile market.However, as with any investment, it comes with its risks, and so as a trading beginner, it’s important to carry out extensive research before entering a position on the market.But where is the best place to start?In this article, we’ll guide you through the key points to research and some helpful tools that can aid you on your trading journey.Read on to find out more.What do you need to research?The first step involves researching the market you wish to invest in — in this case, the forex market.Fundamental analysis looks at wider economic variables and whether these events or reports will cause a currency pair to rise or fall in value. Such variables include, but are not limited to:Interest rates — determined by central banks, the interest levels can influence the strength or weakness of the nation’s currency. The market usually responds to any changes in monetary policy. For example, if there is an unexpected cut in interest rates, the market will experience volatility, and the currency will likely drop in value.Unemployment rates — this data can serve as an indicator of an economy’s strength and, thus, its currency. In general, a higher employment rate will mean a stronger currency. Suppose you’re considering investing in a major currency pair. In that case, it’s worth monitoring the Non-Farm Payrolls (NFP) report, which encompasses the country’s official employment data, and is released on the first Friday of every month.On the other hand, technical analysis uses chart indicators and patterns of past performance to evaluate and predict the future movement of a currency pair. For example, you can determine whether a currency pair is overbought or oversold with this analysis. To inform your prediction, you will need to research statistical trends, such as trading volume and price movements.It’s best to conduct this analysis before you begin forex trading and use a technical and fundamental analysis blend to discover potential investment opportunities.Source: Getty ImagesForex trading strategies and financial goalsOnce you have a good understanding of the forex market, you can formulate your trading strategy and set goals based on what you’d like to achieve from your investments.This will involve a lot of patience, trial and error, and continuous reviewing of your plan as you gain more experience in forex trading. However, it’s best to set realistic and small goals at first, which are more achievable.Tools to use in your research There is plenty of resources and information available online to aid your research. Make sure to also take advantage of the help and support from your chosen online trading platform. For example, you learn more about forex trading on Plus500, where you’ll find helpful guides, answers to your FAQs, and news and insights about the forex market.It’s also worth testing your trading techniques with a demo account, which you’ll usually find as a free offering from online trading platforms. With a free demo account, you can experience and get to grips with the forex market and trading before you move on to using real capital.An economic calendar is also an important financial tool in your research. This collates all the information about economic events and reports, including when they are to occur and the impact level on the relevant currency pair.Once you begin forex trading, you can keep a journal of your forex trades to document your trading decisions and recognize any mistakes. By tracking your trades, you can learn from these mistakes and help inform your future decisions should a similar situation occur.