Be a Smarter FOREX Currency Trader: Three Basic Principles
Below I will describe three basic principles that may come in handy for currency traders. They are very easy to implement and potentially take advantage of as you will see.
Principle 1
Some currency traders find that it is useful to always trade a given currency pair at the very same time every day. The reasoning for this is that most of the other traders buying or selling that currency pair may also trade at the same time. Major trading pits may also be working the exact same shift every day. This technique may be especially useful for currency traders who exploit technical analysis. Again, the reasoning for this is that it may be possible to standardize the trading conditions if one trades during the same time frame every day, if only for a very little bit. However, that small bit of standardization may yield several pips worth of profit. Nevertheless, it is readily obvious that the foreign exchange market can be very volatile and random.
Principle 2
Certain currencies trade with a certain volatility at a certain time. Once you've finished practicing your trading skills on a demo account and you decide to test the waters using your own investment capital, you may want to minimize the amount of liquidity and volatility to hedge your risk. Alternatively, you may want to increase the risk involved, and potentially increase your profit potential. (It should be noted that very heavy risk is involved under any circumstances.)
The foreign exchange market follows the sun around the world moving from the United States to Australia and New Zealand to the Far East, to Europe and finally back to the United States. Overall foreign currency trading volume is determined by which markets are open and the overlap in the times that these markets are open. Currency trading volume is relatively high 24 hours a day, but there are considerable peaks in activity when the British, European, and US markets are open simultaneously, which is from 1 pm GMT to 4 pm GMT. Pacific Rim markets, such as Japan and Hong Kong, show a dip in their trading volume while there is extensive volume in the US market at the very same time. Nevertheless, it is still possible to perform technical analysis on Pacific Rim currencies. By trading during a certain time frame, one may be able to either minimize or maximize the level of volatility (and risk) for a given currency pair.
Principle 3
Although the above is a general statement about the activity volume for certain currencies, it may be a good idea to attempt to capture the level of volatility for given currency pairs. You can potentially use Bollinger bands, a tool used by technical analysts, to quantify volatility. Bollinger bands compare volatility and relative price levels over time. Some currency traders cannot trade a day in their life without using Bollinger bands, while others may not find any use for them; it is really up to you to decide whether Bollinger bands are of any use to your specific situation.
I have described three basic principles that may potentially come in handy for currency traders in the foreign exchange market. They are very easy to implement and may reap rewards (or lack thereof) depending on market conditions. Hopefully these principles will help you come up with your own successful strategies for trading currencies in the foreign exchange market.
Joshua M. Kunken is Currency Analyst for ForeignMarketWatch.com. His articles may also be found at ForexTrack.com.
 Google News Updated : Thu, 24 Jul 2008 00:51:42 GMT Microsoft refunding gamers, Games for Windows Live goes free - Ars Technica
Ars Technica - By Frank Caron | Published: July 23, 2008 - 07:06PM CT PC gaming wasn't a huge factor at this year's E3, but it seems that Microsoft was merely biding its time before making its big moves to try and perk up the waning PC gaming market. Microsoft Drops Player Fees On Games For Windows Live Unangst: GFW Live Has Full Game Download Plans 'On The Roadmap' Publ.Date : Thu, 24 Jul 2008 00:17:11 GMT Google unfurls less laughable Wikipedia - Register
Register - By Cade Metz in San Francisco → More by this author Back in December, the search engine cum world power announced an anyone-can-edit online encyclopedia it insists on calling Knol, and this morning, with a post to The Official Google Blog, ... Google Launches Knol, The Monetizable Wikipedia Google opens Knol website, a wiki with bylines Publ.Date : Wed, 23 Jul 2008 23:46:16 GMT Genetic Cause of Statin-Related Muscle Pain Found - Washington Post
Washington Post - By Ed Edelson WEDNESDAY, July 23 (HealthDay News) -- British researchers have discovered a genetic variant that causes some people who take cholesterol-lowering statins to have the muscle weakness called myopathy. 7 Reasons Not to Dismiss Statin-Caused Pain Discovery may boost statin safety Publ.Date : Wed, 23 Jul 2008 21:59:27 GMT US House Approves Fannie-Freddie Bill by 272-152 (Update1) - Bloomberg
Bloomberg - By Brian Faler July 23 (Bloomberg) -- The US House of Representatives approved legislation designed to shore up confidence in Fannie Mae and Freddie Mac and stem the record surge in mortgage foreclosures, sending the bill to the Senate. Video: House OKs Rescue for Homeowners, Freddie, Fannie US mortgages: Bush relents on veto threat to Fannie and Freddie ... Publ.Date : Wed, 23 Jul 2008 23:37:49 GMT Angels' bats loom large in victory over Indians - Los Angeles Times
Los Angeles Times - Normally tepid offense produces season highs in runs and hits (19). Jeff Mathis, Howie Kendrick and Casey Kotchman combine for 13 hits, Francisco Rodriguez gets 42nd save and team ups West lead to 10 By Bill Shaikin, Los Angeles Times Staff Writer The ... Mathis drives in six; Angels hold off Tribe in wild slugfest Angels pound Laffey, slam Mastny, in ripping Indians, 14-11 Publ.Date : Thu, 24 Jul 2008 00:05:36 GMT "Dark Knight" beats total of previous Batman film - Reuters
Reuters - By Dean Goodman LOS ANGELES (Reuters) - After just six days of release in North America, the new Batman sequel "The Dark Knight" has grossed more domestically than its predecessor did in its entire run, distributor Warner Bros. Video: 'Dark Knight' Sets Weekend Box Office Record 'Dark Knight' may be summer's highest-grossing film Publ.Date : Wed, 23 Jul 2008 23:19:56 GMT "Bad Girls" mind-set, Pierson and Parker a volatile mix - WNBA - ESPN ESPN - By Mechelle Voepel What does it take to light up a tinderbox? Just a spark. Or in the case of the Detroit-Los Angeles scuffle with 4.6 seconds left of a WNBA game Tuesday, it was a Spark. WNBA reviewing fight between Detroit, LA players Don't make Mahorn the bad boy in WNBA scuffle Publ.Date : Wed, 23 Jul 2008 23:15:40 GMT RSS Software |
PARLOT::Ebooks, Scripts,
Websites, and more... To make a profit, in the FOREX, a trader can... Read More If you want to be a successful trader, you must... Read More For those unfamiliar with the term, FOREX (FOReign EXchange market),... Read More Forex made easy is as simple as you would want... Read More My father, who owns a small parts store and garage... Read More Q1: When you consider that the foreign exchange market has... Read More The European Union (EU) constitution was dealt a double blow,... Read More "Is it important to be creative in your trading?"I'm not... Read More Could it be possible that you are staring right into... Read More Are you looking into a career in day trading? In... Read More You may be asking yourself "how does one begin to... Read More If you ask me whether the market will have moved... Read More Foreign exchange market is also known as Forex or FX... Read More One can learn forex trading as easily as one would... Read More You know the old joke:"How do you make a million... Read More Throughout our course on futures trading, we have tried to... Read More The investor in the currency market takes for granted that... Read More Momentum day trading can be extremely profitable when done correctly...Day... Read More In recent years, investors have witnessed increased number of investment... Read More Forex option brokers can generally be divided into two separate... Read More Currencies are traded in dollar amounts called "lots". One lot... Read More The Foreign Exchange Market ? better known as FOREX -... Read More Most traders tend to concentrate on pinpointing the perfect entry... Read More It is possible to buy and sell money from different... Read More We all know when you go on a trip to... Read More
Adsense
websites
Example of a Profitable Transaction in FOREX
Dont Deny Reality
FOREX 101: Make Money with Currency Trading
Forex Made Easy for Everyone
The Miracle of Forex
Online Forex
Crisis of Confidence in the EU
Creativity in Trading
Assessing the Opportunities Presented by the New Iraqi Currency
Exploring the World of Day Trading
Trading Profitably on the Foreign Exchange Market
Where is the Market Going?
The Basics of Forex
Learn Forex Trading - a Guide for Beginners
Risk and Stock Trading Fees: The Two Barriers To Overcome If You Want A Successful Trading Career.
Experience
A Look at Forex Market Makers
Momentum Trading: A Practical Day Trading Strategy to Get Profits from Hot Stocks
Forex Scams: How to Spot Them A Mile Away
What are Your Options Regarding Forex Options Brokers?
The Seven Most Traded Currencies in FOREX.
FOREX - Where Fortunes Are Made Everyday
Trade Entry Techniques
Forex Currency Trading
How to Trade Currency
Affordable and Reliable Web Hosting Starting at $4.49/Month
ISO 4217 in Forex Trading
ISO 4217 is an international standard describing three letter codes... Read More
What is Forex Trading?
Forex, or Foreign Exchange, is the simultaneous exchange of one... Read More
Day Trading Success- The Key Is Survival
Most new traders tend to focus just about all their... Read More
Is The U.S. Dollar About To Reverse Course?
For the first time in several years the U.S. dollar... Read More
Forex Options Market Overview
The forex options market started as an over-the-counter (OTC) financial... Read More
How Do Other Countries Devalue Their Currencies?
Countries devalue their currencies only when they have no other... Read More
Trade Entry Techniques
Most traders tend to concentrate on pinpointing the perfect entry... Read More
A Beginner?s Guide to FOREX
FOREX is the abbreviation for the Foreign Exchange market. FOREX... Read More
Forex Brokers - Helping to Maximize Your Success
A Forex broker is a broker dealing in foreign exchange,... Read More
Where is the Market Going?
If you ask me whether the market will have moved... Read More
Intrenet Marketing VS Forex Currency Trading
Have you noticed that when someone's trying to sell you... Read More
FOREX - Where Fortunes Are Made Everyday
The Foreign Exchange Market ? better known as FOREX -... Read More
Forex Broker
A broker is any person or firm that charges a... Read More
Sending Signals for Trading in Forex
Forex signals are sent by a forex firm to their... Read More
Money Management - The Holy Grail Of Trading
Money management determines how much to risk on each individual... Read More
How To Choose Wisely A FOREX Broker
Most traders use a FOREX broker to handle their transactions.... Read More
Hedging Foreign Exchange Risks
The exchange rate of the Macedonian Denar against the major... Read More
Assessing the Opportunities Presented by the New Iraqi Currency
Could it be possible that you are staring right into... Read More
How To Handle A String Of Losses
Everybody hates to lose and unfortunately no one is blessed... Read More
Trading Profitably on the Foreign Exchange Market
You may be asking yourself "how does one begin to... Read More
Day Trading Course or Day Trading Technique Seminar: Learn Day Trading Education
Profitable day traders recognize that momentum trading is among the... Read More
Adaptation to the Realities of the Market
Do you think adaptation to the realities of the market... Read More
Forex Broker Involvement Optional
To trade on the forex market, the largest financial market... Read More
The Nature of the Trading Business
Consider the following: As a trader you are in a... Read More
Getting a Forex Trading Education
Many Americans are interested in getting involved in forex trading.... Read More
Currency Trading |