This is my currency trading 101 course to help you become a better trader. Making profits in this business requires one important behavior; consistency. That’s all it takes to be great. Applying the same tactics everyday is what makes it all work out.
Financial News: This is important, but often overlooked by most people. Currencies will follow natural market forces, for the most part. But if there is important economic or financial news it’s going to have an immediate effect. The most important piece of news you need to watch out for is anything to do with the Federal Reserve. This is the central bank in the United States and it controls the supply of currency in the economy. The Federal Reserve will cut or increase interest rates and these are important to follow, both in the United States and around the world. You should also pay attention to other economic news such as jobs created, unemployment rates, GDP, etc. These numbers are basically the numbers that hold up a currency. If these things are looking good, it usually means the currency is good. If these things are going bad, than the currency usually goes down. High Volume Times: Stick to the times when most people are trading. The reason for this is that there are a lot of big banks out there that will do trades that are of enormous size. At low volume times these trades can cause currencies to move in a completely opposite direction. This makes it very hard for a trader at low volumes. You stick to trading at high volume times because there is so much trading going on, one big bank can’t effect a currency. Up or Down: That’s essentially all a currency will do. It’s either going to go up or down in one form or another. Obviously, from a logic point of view, you need to start identifying currencies right before they’re about to make their move. This is what professional traders spend years trying to perfect a way to figure out when this is going to happen.
By: Tyler Ziggler
About the Author:
This is my currency trading 101 information. I’m currently giving a 7 day free forex training course. Newbies and experienced are all welcome. If you’re interested in participating, check out the Casual Forex Trader.
