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Currency trading, how BIG is this thing?
How BIG is it? The GOLDEN question... A few things I forgot to mention in the previous post, my apologies. As mentioned previously Forex is where traders buy and sell currencies (of all nationalities) with the hope of a profitable outcome, when...
Emotions: A Trader's Worst Enemy; Get Rid of Fear and Greed - You'll be Glad You Did
Copyright 2005 Jonathan van Clute You hear it over and over and over in books, forums, and chatrooms. Fear and greed, fear and greed, fear and greed. Emotions are a trader’s worst enemy. What are we supposed to do about it? We are human after all....
Forex Versus Stocks
Stocks have been a popular investment for hundreds of years. Companies issue stocks to raise capital for expansion and new projects, and each share of the stock represents a partial ownership in the company. When the company does well and makes a...
The New World Currency
Do you ever consider the possibility that the money you work so hard for could be gone from your pocketbook in the next few years?
Quicker then you might think, currency as we know it, is changing. Necessity for efficiency is transforming the flow...
The Seven Most Traded Currencies in FOREX.
Currencies are traded in dollar amounts called “lots”. One lot is equal to $1,000, which controls $100,000 in currency. This is what is known as the "margin". You can control $100,000 worth of currency for only 1,000 dollars. This is what is called...
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Trading Profitably on the Foreign Exchange Market
You may be asking yourself "how does one begin to trade profitably as a currency trader?".
First, it is important to closely monitor foreign equity markets to attempt to predict or model how their respective currencies will perform against other currencies, ideally, currencies that are not very closely related, nor proportional, to the former currency.
For example, Mexico's economy is closely linked the the U.S. economy, in some respects, but in other respects, they are not very directly proportional since Mexico's economy is currently improving as a consequence of increased consumer financing, an increased number of remittances from family members in the U.S., and other factors.
Back to our original point, when you
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begin to notice that an equity market is about to become bullish, it may be a signal that the currency of the country in which the equity market you're looking at is based may be about to rise.
Other currency fundamentals to consider include a country's interest rates, deficit, exports and imports, as well as, and probably very importantly, oil prices. Look at how the recent OPEC meeting affected oil prices and how that in turn had a considerable effect on the DJIA.
About the author:
Joshua M. Kunken is Currency Analyst for ForeignMarketWatch.com. His articles may also be found at ForexTrack.com.
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