When you start trading foreign currencies - or even shares of this issue - it is convenient to some specific rules to follow. A set of rules is exactly what we need to lift our confidence, and profits to reduce the number of costly mistakes that we make.
A few simple guidelines can make all the difference.
Kathy Lynn, executive director of research at GFT book about what to do - and more importantly, what not to do - in Forex trading. It advises companies on how to take advantage of press releases and short-term fluctuations, which is best for forex trading and what time, how to make a good production and marketing of capital leveraged carry trades (more on below), and the best technical and fundamental strategies for the recruitment of - plus the good thing is that even large retailers hard he did not hear.
Some of these tips are strategies that employ professional traders who are rarely taught to beginners. The good news is that many of them had died and easy to use.
Trade press releases is one of the most popular entertainment for currency traders. Traders put the deals, or immediately before or after the message of economic losses, as figures for non-agricultural wages in the United States or the consumer price index figures in Australia - and wait for the response to the reaction in the market to digest information. But with the frustration felt by many traders, currency pairs after their release and are often shot in the expected direction, or just move in general.
Mortgage tells us never to do forex trading five minutes before the release of economic development (spread can be extended). Better to put 15 to 20 minutes before the expected release, she said. If you decide to trade after the economic message only do so if the news was significantly better or worse than that - more than 100 percent - than market expectations. However, you may find yourself nursing trade can happen anywhere quickly. It's useful material for the follow-up experiment.
Lien learned these skills as a trader of foreign currency trading floor of a large number of U.S. investment bank. Those traders who trade millions of dollars worth of currencies a day, which is the main objective is to accumulate large profits of the bank.
Want to learn marketing tip that professional traders, which require the use of little more than a keen eye and a chart candlestick? Mortgage revealed the existence of strategy is very popular in the world of professional marketing strategy, called today. New traders are often amazed at the ease, accuracy and reliability, "it notes.
Yan says the "inside" day occurs when the daily high and low for a pair of currencies does not exceed the previous day high and low. It says the more days that occur within the lines, and the more likely that the president will come to instability or flight scenario.
Select the days used in the graph tends to lead to the daily increase the likelihood of successful hours of graphs, which is good to know.
"If this strategy is used in a single day, and you will see that the days are often trading schemes are less common than in the daily chart, so it is very accurate when it appears on the daily chart, the rarest of things can be very valuable."
Lien said that the use of daily charts that traders can look forward flight of the main market of economic releases for the specific currency pair. This strategy works for all currency pairs, she says, but is most effective in the range as strict pairs USD / GBP, USD / CAD, EUR / CHF, EUR / CAD and AUD / CAD.
Long before the start of the application of these techniques, but also the novice trader, you must first decide on a trading strategy to follow up and choosing a pair of currencies or a combination of currencies to trade (do not forget currency pairs can be linked to strongly positive, or negative, This means that if you trade currencies in the combination, you must know in advance how they interact with the incorrect combination may cancel his or double-exposure).
Privilege and shows that there are two ways to trade currencies - and the trend following trading range and the strategy that should determine the choice of currency pairs that you choose to buy and sell.
Simply put, traders need to apply strategies gamma gamma forex trading and trend trading strategies for trading the currency pairs trend. "In the renminbi / Japanese yen, for example, has a large number of pair of currency trading strategy is terrible and there is a trend trading strategy."
"A man with a gamma trading strategy should look to trade currencies just as renminbi / Japanese yen, while the trend traders should avoid renminbi / Japanese yen."
Once, when I noticed that the currency pair hits zero or twice the number of the round pool is usually greater than other groupings of prices? Lien noted that the stop-loss orders are usually placed outside the circle of mere numbers, and tend to cluster traders to take profits in the number of orders round. "Traders and human rights and not to think in round numbers," said Lien. "As a result, the take - profit orders have a very high tendency to be placed in double-zero level."
Double zeros, where they are the numbers in the last two digits of zero - for example, at 107.00 dollars / yen and 1.2800 in the EUR / USD.
She says: "double-zero" strategy puts traders on the same side of market makers. Can position you to fight the fast pace in the direction of double zero ", she said.
"This kind of reaction is ideal for foreign exchange dealers during the circulation, because it enables them to risk 50 points, while only 15 to 20 points."
Another strategy for the implementation of the leveraged transactions, the preferred strategy for the global hedge fund managers and investment banks. The good news is that this strategy is that currency traders can be used successfully every day in the long term. The best time frame for the implementation of trade strategy, borrowing from at least six months.
For a brief period, the strategy involves buying currency offer higher interest rates and a weak Australian dollar and selling foreign currencies, which offers low interest rate, such as Swiss francs.
Mortgage gives an example: Suppose that before the Australian dollar by 4.75 per cent, while the Swiss franc interest rate of 0,25 percent offer. Trader can profit from the 4.50 per cent (4.75 per cent interest earned less than 0,25 per cent interest), provided that the exchange rate between the Swiss franc and Australian dollar does not change. If you add power to the mix - say five times - the return of 22.5 percent was the difference in interest rates.
