Currency Trading: A Novices Look At Currency Trading
There is a lot to learn when you decide to start currency trading. The currency trading market is called the Foreign Exchange Market, the Currency Market. Most commonly, the Forex. This is one of the largest markets in the world. it's traded on 24 hours a day, 7 days a week. The market is. The most part high risk. The more a person knows about Forex, the more successful they'll be in trades. This short article can't begin to give you all of the information you need to begin trading. Even currency trading for dummies will require time and study to accomplish.
Dallas, Texas (PRWEB) December 07, 2011
Commodities expert Phil Storer, Director of Commodity Trading for Dillon Gage, Inc., in Dallas, TX and author of "Chalk Talks For Traders: Easy Xs and Os From A Proven Pro" says, "You do not have to be a professional trader in order to be successful in the financial markets."
The secret is in the plan and the plan can be found in his book "Chalk Talk for Traders: Easy Xs and Os From A Proven Market Pro" (Brown Books Publishing Group).
An expert at predicting direction as well as the duration of time and distance that markets travel, Storer teaches readers how to identify a particular momentum in the markets then shows them simple ways to create a trade around that core.
Storer spells out the very basic principles to market decision-making in clear and simple language.
Readers will learn great trading tactics at a variety of levels:
Money Management Market Direction Mechanics Market entries and exits Protecting equity Money flow
"Chalk Talks for Traders" provides easy-to-understand explanations for the essential techniques and analysis used by successful traders.
“Individual investors can succeed in the stock and commodities markets just like professional traders do if they will consistently apply these very basic principles to their market decision-making,” says Storer.
Before you know it, readers will be able to easily spot potential trades and know immediately what the likely potential is and how much to risk. The exuberance that comes from that confidence will confirm they can look at a chart of your mutual fund, for example, and recognize when to enter and when to step aside.
Storer simplifies the process while maintaining integrity and credibility. If readers understand the proper methods and techniques to trading, and are disciplined enough to know when to pull...
In it’s simplest terms, Currency traders (traders), bet on currency exchange rates between specific countries. These rates can change by the minute and are based on many factors. The Forex is a completely level playing field. No one gets information ahead of time. Successful traders have systems and indicators that help them to recognize a change in direction for a certain currency and act on it proactively. It takes time and study to learn how to develop this speculative talent.
The most telling impact on currency in a country can be seen by the people of that country. Wars, arms, a death of major leaders, all affect the currency exchange rate. The global economy is affecting currency exchange rates around the world. Individuals who are speculating on when this currency will change direction have an opportunity to see significant gains in their portfolios or to lose substantially.
Traders try to predict fluctuations in the exchange rate and bet on the pairs that'll give them the largest gains on their bet. When one country’s currency is being traded against another country’s currency, it's call a “pair”. All of the major pairs that are traded involve the US dollar. When a currency pair is being traded that doesn't involve the US, it's called a “cross currency pair.”. An example of a cross currency pair would be EUR/JPY (Euro/Japanese Yen). The most actively traded cross currency pairs are the EUR, JPY. The GBP (sterling pound or British currency).
There are a couple of important things to know about how the pairs are shown. First, the stronger currency is traditionally listed on the left. So, when you see EUR/USD, you know that the Euro is stronger than the US dollar. This stronger currency, the one on the left, is called the “base currency.”. The base currency is what you buy or sell. So, if you buy 10000 EUR you're automatically selling 10000 USD.
“Secondary currency”. “counter currency”. Is the currency on the right. This currency will determine your gains or losses when you trade. For instance if you buy 100 EUR and simultaneously sell 100 USD, you've made +50. Why? Because the EUR is worth 100 and the USD is worth 50.
There are thousands of these trades taking place every minute of every day. The rates move and fluctuate very quickly. Your success as a trader depends on your ability to read market fluctuations and make trades proactively. you'll find pairs that are extremely high risk and pairs that are very low risk. Knowing the how much risk you can afford to take will determine which pairs you focus on in trading.
As you can see, this is just a teeny little peek at what there is to learn. Currency trading for dummies isn't a short topic. you'll want to learn about strategies and methods. you'll also want to discuss Forex with successful traders through websites and blogs to learn what strategies they use and what they've tried that didn’t work. When you're looking at programs and tools, you'll need to do some research to make sure they've been written by a person who really is a successful trader and that the program they're selling is consistently successful.