How Is It Possible to Trade Forex Successfully?

http://www.forexconspiracyreport.com/how-is-it-possible-to-trade-forex-successfully/ How Is It Possible to Trade Forex Successfully? By www.ForexConspiracyReport.com Currency exchange rates go up and they go down. Speculators can make money from the volatility of Forex markets. But, how do they do it? How is it possible to trade Forex successfully to the point where you can quit your day job and just be a currency trader? Getting Started If you are going to be successful at anything you need to start correctly. Here are a few thoughts from our article how to get started trading currencies. First you need to know how the market works. Forex currency rates are set by trading in the three major markets, which are London, New York and Tokyo. Traders buy one currency with another. These currencies are referred to as Forex pairs. Major Forex pairs are the most traded currencies of the world. Here are the major pairs and their trading symbols; US Dollar, USD Euro, EUR British pound, GBP Yen, YEN Swiss franc, CHF Canadian Dollar, CAD Australian Dollar, AUD Minor currencies are all of the rest. These include the currencies of nations with substantial economies such as Brazil, Chile, Mexico, Russia, India, South Africa, South Korea, Norway, Sweden and China. And minor currencies include those of Iraq, Yemen, Ghana, etc. Many of the minor currencies of the world only trade against the US dollar thus eighty-five percent of all Forex trades include the US dollar. Unless you have specific expertise or insider knowledge of minor currencies stick with the majors. Then learn the technical analysis of Forex currencies. This is how the vast majority of day traders find it possible to trade Forex successfully. Technical analysis of Forex currencies has to do with using market price patterns to predict the next market move. Traders use tools such as Japanese Candlesticks in order to use market history to predict coming market events. An old saying is that the past predicts the future and this is the foundation of the technical analysis of Forex currencies. Thus technical traders do not worry about the fundamentals but rather jump in and out of the market based on technical cues. The point is that market patterns repeat themselves and by reading the first part of a pattern correctly a trader can buy or sell and take advantage of the price movement of the second part of the pattern. Technical day traders only stay around long enough for a profit and then exit to prepare for the next trade. This is as opposed to swing trading which is based on fundamentals. Swing Trading The eventual price of the dollar versus the euro, yen or yuan is determined by balance of trade, economic prosperity and economic and monetary policy. It is possible to spot a potential trade based on analysis of fundamentals. In this case a trader will buy or sell a currency in expectation of an eventual price swing. This is also where traders use Forex options. There are three good reasons for Forex options trading. In international business transactions Forex options trading helps hedge currency risk. In volatile markets Forex options trading both helps limit risk while providing profit potential. And traders can use Forex options trading to provide extra leverage for their trading capital. A swing trader who expects a rise in the value of the dollar versus the euro can buy calls on dollar with the euro and simply wait for the change to occur. His risk is limited to the price of the options contract so he is not tying up all of his money in the trade. For more insights and useful information about Forex markets and trading, visit https://youtu.be/7JEcAkvInhE

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