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Currency Trading – The Future Of Investment
Forex Trading, meaning Currency Trading, is a world wide, little known market, which will become the most popular source of income for investors in the very near future. It is open for banks, rich investors and small ones alike and, depending on...
Go Public Young CFO, Go Public
Go Public Young CFO, Go Public By William Cate Going West in the 1850s was the American path to business success. It made the railroads the dominant economic power in America in the 19th Century. Going overseas was the business success strategy...
Learn FOREX
Copyright 2005 Timothy Rohrer
The foreign exchange market, also knows as FOREX, originated in
1973 has become the largest e-currency trade market in the world
today. FOREX trading occurs 24 hours a day, 5 days a week. The
FOREX market offers...
Some Reasons Why You Should Trade Forex and Two Important Forex Concepts You Must Know.
These days everyone is talking about Forex trading and the great
opportunity this activity represents for people willing to brake
free from the corporate world and start working from home or any
where else without losing their current lifestyle...
The History of FOREX Trading
The origin of FOREX trading traces its history to centuries ago. Different currencies and the need to exchange them had existed since the Babylonians. They are credited with the first use of paper notes and receipts. Speculation hardly ever...
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FOREX Trading Strategies
FOREX Trading Strategies
To be a successful FOREX trader you need to develop and adhere
to a trading strategy. There are many different strategy's
available and no particular one is good for all traders; rather,
each trader needs to develop his or her individual approach to
the FOREX. We each have special skills that separate us from
others and the FOREX trader needs to find what works best for
him/her. Some traders rely solely on technical analysis while
others prefer fundamental analysis, but many successful FOREX
traders use a combination of both to get a broad overview of the
market and for plotting entry and exit points.
Technical analysis, or charting, relies on one key concept:
Prices move by trends. The common saying in FOREX and stock
trading is 'The trend is your friend.' If prices are moving in
one direction, the strength of the move can be observed by
looking at the chart. Market movements have identifiable
patterns that have been studied for many years and a thorough
understanding of these trends and how to use the trends to make
FOREX trading decisions form the basis of a good trading
strategy.
There are many analytical tools available to study market
movements. FOREX traders can use computer software or even pen
and paper to perform their own analysis. Books abound describing
many of these strategies. The beginner FOREX trader should study
each one well and acquire a working knowledge of the concepts.
Study each method until it is mastered, then use itthe strategy
to fully learn it. Once mastered, move on to the next strategy
and repeat. It is a simple practice to "trade" FOREX simply on
paper, without entering any actual trades. In fact, this method
is highly recommended until the beginning FOREX trader builds
some confidence.
Support and resistance levels are used in many FOREX trading
strategies. 'Support' refers to the price level that is
repeatedly seen as the bottom - when the price reaches this
level it tends to rise. Prices will seldom fall below the
"support" line. At the opposite spectrum is the Resistance
levels. Resistance appears to be the peak that a price will
reach when buyers and sellers seem to agree. At this apex prices
will move up no further. The space in between "resistance" and
"support" is known as the "trading range". Prices can move back
and forth within this range for some time. The longer the time
frame spent in this range, the more important the signal
triggered when prices move outside of the range.
When currency prices break through either support or resistance
levels, the prices are expected to continue in that same
direction. As mentioned, the longer prices stayed in a trading
range, the more significant the "breakout", if prices move above
"resistance" or "breakdown", if prices fall below "support" For
example, if the price rises above the previous resistance level,
it is seen as bullish - the price should continue to rise.
This
signify's that more buyers have entered the market and this
increased "buy" pressure will move prices higher. Conversely,
when sellers are too many and buyers few, a "breakdown" could
signify prices moving lower again until buyers and sellers once
again reach equqlibrium. To find support and resistance levels,
price charts need to be analyzed for unbroken support and
resistance levels. Charts can be analyzed in any time frame;
short term traders will study daily or even hourly charts while
the long term trader will use weekly or monthly charts to easily
see the long term trend. Traders can use support/resistance
levels to determine when to enter or exit a transaction.
Moving averages are another common tool in FOREX trading
strategies. If a trader only uses the closing price of a
currency at the end of the day as a guide, it is hard to
establish the true direction of the move. Moving averages
"smooth" out the large moves and give us a much clearer look at
the currency price. One average used is the simple moving
average (SMA) shows the average price in a given period of time
over a specified period of time. A 10 day SMA simply takes the
past 10 day closing price of a currency and averages out the 10
day data. Another popular moving average is a weighted moving
average. While similiar to the SMA, the WMA puts more emphasis
on the last several days trading. So while still showing a 10
day average, more weight is added to the last couple of trading
days to better reflect the true trend. When prices are above the
MA, they will tend to stay above the MA line. When the MA is
below the line, price decline can be expected as well.
These are examples of trading strategies that can be used
individually or in combination. In practice, the FOREX trader
should have a repertoire of trading tools to examine market
conditions and to support the findings of one trading method or
another. Experienced traders will rely on several, rather than
one, key indicators to base their trading decisions on.
Similarly, fundamental analysis can be used to reinforce
technical findings, or vice versa. The FOREX trader will study
currency valuations, inflation rates, and other key financial
indicators to decide whether a currency is "cheap" or
"expensive" Ideally, the FOREX trader will use several
indicators into account when plotting a trading strategy.
Every trading strategy should provide clear guidelines about
when to enter a trade, what to expect in terms of market
movement, when to exit a trade, and how much loss can be
accepted in case the deal moves against the trader. Following
these simple guidelines and learning about technical analysis
can help you become a successful FOREX trader.
About the author:
Read more of this informative series designed for the beginning
FOREX trader at
http://www.informationisthekey.com/forex
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| Currency Trading, Forex Trading, Forex, Online Currency Trading |
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| OANDA FXGame - Currency Trading Demo Platform |
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| Currency Trading News, Forex Trading News, FX News, Forex News |
| Currency Trading News, Forex Trading News, FX News, Forex News - Daily FX. |
| www.dailyfx.com |
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| Currencies - Currency Converter & Latest Rates at CNNMoney.com |
| Dec 6 1:18pm ET †, US $, UK £, Japan ¥, Euro €. US $, 0.5079, 115.05, 0.7517. UK £, 1.969, 226.50, 1.4798. Japan ¥, 0.008692, 0.004415, 0.006533 ... |
| money.cnn.com |
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| FOREX Advisory |
| The CFTC urges you to be skeptical when promoters of foreign currency trading claim that their services or account management will earn high profits with ... |
| www.cftc.gov |
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| Forex Trading: Online Currency Trading from Global Forex Trading |
| Global Forex Trading is the premier online foreign currency trading firm and a primary market maker. To learn more about forex trading, visit GFTForex.com. |
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| Amazon.com: Foreign Currency Trading: From the Fundamentals to the ... |
| Amazon.com: Foreign Currency Trading: From the Fundamentals to the Fine Points: Books: Russell Wasendorf by Russell Wasendorf. |
| www.amazon.com |
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| Forex, Online Currency Trading, FX, Foreign Exchange | ACM Forex |
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| Forex-Day-Trading.com - Currency Trading with FREE Training |
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| Forex Online Currency Trading: Welcome to Global Forex |
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| Forex trading - Realtime Forex online currency trading |
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| www.realtimeforex.com |
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| Forex Blog |
| Forex news blog with daily commentary. Has a good beginner's article. |
| www.forexblog.org |
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| Common Questions About Currency Trading |
| Whether you're puzzled by pips or curious about carry trades, your queries are answered here. |
| www.investopedia.com |
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| OANDA FXTrade - Currency Trading Basics |
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| Currency trading, free forex charts, news and analysis |
| Online currency trading with technical analysis, charts and forex news. |
| www.gfforex.com |
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| Finance - Currency-Trading Ezine Articles |
| EzineArticles.com allows ezine or email list publishers to upload or download free expert content that can be used within email newsletters or websites. |
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| MG Financial Group - Forex, FX, Online Forex Trading. |
| www.mgforex.com |
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