| So you are sick of the stock market and are looking | | | | margin account, so this is not for your 401(k) or IRA |
| to build your assets via Forex. You understand the | | | | savings accounts. In a later article will talk about |
| many benefits of Forex, but do you really know | | | | trading plans and leverage - two tools in your arsenal |
| what drives the Forex market? Well like every | | | | that can help with risk management. |
| market, it is driven by information. In this article will | | | | Currency trading Tip - Consider the Technicals |
| discuss some of the different factors that play into | | | | As many traders consider the fundamentals not all |
| the information that drives the Forex market. | | | | action is known or understood by the fundamentals. |
| In its simplest form, trading a currency pair mean | | | | Many traders also rely on the technicals. It's very |
| spitting the major international economies against | | | | important to learn or understand many of the basic |
| each other. However that might be considered | | | | technical indicators. You don't need to be a math |
| simplistic when discussing the euro as there are | | | | major to understand technical analysis, just like you |
| several countries involved. The currency markets are | | | | don't have to understand the physics of an internal |
| very large and of course the macro economics of | | | | combustion engine in order to drive an automobile. |
| the countries and their politics should be considered. | | | | It's highly recommended to get a few good books |
| Currency trading Tip - consider economic | | | | on technical analysis and study them, even if you're E. |
| fundamentals | | | | have some experience. When reading books on |
| When trader speak of Asian currencies fundamentals, | | | | technical analysis try to focus on the three main |
| they're referring to economic fundamentals. These | | | | areas: |
| fundamentals include: | | | | - charts |
| - monetary policy | | | | - patterns |
| - interest rate levels | | | | - trends |
| - Economic data reports | | | | Other topics that are important to learn are support |
| - intermediate trade flows | | | | and resistance, and confirmation. |
| - international investment flows | | | | Books on technical analysis that are highly |
| Good traders know where to look for this | | | | recommend include technical analysis of the financial |
| information, gather, interpret and included in their | | | | markets, by John Murphy, technical analysis explained, |
| trading plans. Also one needs to consider political and | | | | by Martin J. Pring. Also recommended texts include |
| geopolitical events and fundamentals. Traders trade | | | | Japanese candlestick charting techniques, vice Steve |
| the Forex using only a computer and internet | | | | Nison, and Elliott wave principle, by AJ Frost and |
| connection. Also to trade the Forex requires a | | | | Robert Prechter JR. |
| brokerage account, which also normally requires a | | | | |