How do I make money on a downtrend?

I am just curious about how to make money going short or on the downtrend. I understand how when the market is going up and you are gaining pips then you sell and you have gained x number of pips which translate into profits. The problem I have is understanding when the market is beginning to downtrend and now is the time to buy or go short. Does this mean you are buying the other currency in the currency pair as it is going up in contrast to the down trending currency. An actual money/chart example would be very helpful. If there is a very clear one on babypips then please direct me to its link. Sorry I tried to look through the forums but could not find a good search on the subject.

Lets take Cable for an example (GBP/USD).

If you are going long that means you are buying GBP and selling USD. Then your hope is that the GBP will strengthen and/or the USD will weaken.

Now for the inverse your going short. So you are selling GBP and buying USD hoping for GBP to weaken and/or USD will strengthen.

Does that help any?

It makes total sense.
I guess I was jumping ahead reading as fast as I could and breezing through the quizes on baby pips but any fool can memorize what they say. I didn’t have a real understanding so now I am going to reread everything starting at preschool.
Thanks for the quick response.

Don’t go too fast. Let it sink it. Perhaps you would also want to re-read the lessons every few days until it sticks. How do you know if your spaghetti is cooked? Of course you throw it against the wall and see if it sticks. So keep throwing the lessons at your brain :slight_smile: