Already on ArticleSlash?

Forgot your password? Sign Up

Currency Trading Basics And Tips


Visitors: 172

I'm here to share with you some of my tips and the currency trading basics that build the foundation of a profitable long term income. This is the largest market in the world with over three trillion dollars US being traded each day, so there is a huge opportunity to make a profit.

  • Trade For The Exit: Exit, is another word for selling. We have been trained in society to think about things counter-intuitive in the currency trading market. We look at prices and try to find the best deal. Well, in the currency market, there are a lot of cheap prices, but that isn't a smart move. We're not buying as a consumer, we're buying with the intention of selling it sometime in the future(1min - months). That means, we haven't profit unless our exit price is a lot higher than our buying price. This means you have to start looking a trades, not by the buy price, but by the expected potential of where a currency will go. If you can sell a currency a month from now for 20% more than you bought, it is irrelevant how much you pay for it.

  • The “Fed": The “Fed" or Federal Reserve is the central bank in the United States. The information on this point applies to all central banks in any country. You probably have heard that the fed's job is to control inflation. The thing you rarely ever hear is that they control the supply of money in the economy. Since currency still follows supply and demand, this means the fed can quickly change the direction of a currency with any policy change. You'll often hear that they “cut" interest rates or “raise" them. This is how they control the supply of money. A cut will allow more money to enter the economy, which drives down the price of the currency. A raise will slow the amount of money that enters the economy, which drives the price up.

  • Don't Be Smart: You don't have to figure and develop these sophisticated trading plans and ideas. Keep things simple because simple works. If you can break everything down into simple daily tasks, you'll do much better.

I'm currently giving a 7 day free forex course. Newbies and experienced are all welcome. If you're interested in participating, check out the Casual Forex Trader.


Article Source:

Rate this Article: 
Forex Fx Trading Currency Pips The Bottom Line to Your Currency Trading on the ..
Rated 4 / 5
based on 5 votes

Related Articles:

The Currency Trading Basics

by: Tyler Ziggler (May 26, 2008) 
(Finance/Currency Trading)

Currency Trading Basics

by: Tyler Ziggler (May 06, 2008) 
(Finance/Currency Trading)

Currency Trading Basics and Advice

by: Tyler Ziggler (May 28, 2008) 
(Finance/Currency Trading)

Currency Trading Basics - Learn Them While Using an Expert Advisor

by: Nate Damm (September 29, 2008) 
(Finance/Currency Trading)

Currency Trading Basics - Understanding The Forex Market

by: John J. Drummond (May 26, 2008) 
(Finance/Currency Trading)

Currency Trading Systems - A FREE Currency Trading System That's Made Millions!

by: Samuel Leslie Berkovits (September 16, 2008) 
(Finance/Currency Trading)

Currency Trading Made Easy - Here's How You Can Learn Currency Trading Easily

by: David Sodergren (April 05, 2007) 

International Currency Trading - Advantages and Disadvantages of Currency ..

by: Kelly Price (July 09, 2008) 
(Finance/Currency Trading)

How To Do Currency Trading With These Tips

by: Charles Nash (May 26, 2008) 
(Finance/Currency Trading)

Forex Fx Trading Currency Pips The Bottom Line to Your Currency Trading on the ..

by: Nigel Banks (June 18, 2008) 
(Finance/Currency Trading)