Learning to trade foreign currency exchange can open your life to potentialities that you never thought possible. Unlike traditional investment venues (like stocks and bonds), forex is truly global and never stops. You can buy or sell with equal equanimity – there are no extras fees (or rules) on either side. The financing terms that come with your account are liberal in the extreme. Where on Earth are you going to find another investment opportunity that allows $1 to control an investment position of $200 or more (which is what a leverage ratio of 200:1 implies)? Last but not least, there are trading accounts tailored to all levels of affluence. If you only want to invest $50, to start off with, that’s not a problem in forex.
Anyone with an interest in long-term trends should pay attention to what’s happening with the USD/JPY. Both the Japanese and US central banks have now invoked policies that have this pair targeting the moon. The only question is how quickly this will occur.
Getting To Know How Foreign Currency Exchange Works
At the most simplistic level of life, foreign currency exchange is 1 currency valued in terms of another (like the value of the Australian dollar in terms of the US dollar, or “AUD/USD”). At a slightly higher level, whether a currency pair is going up or down depends upon the perceptions of those people who need or use it. Thus, if you look at the EUR/AUD weekly chart, you’ll notice that things are looking up for the euro, in terms of Australian dollars. At a trading level, you’re also interested in the momentum of such trends because a large momentum wave is a dream come true for long-term traders. An example of this, in 2013, is the daily chart of the USD/JPY.
Why Trading Foreign Currency Exchange Could Change Your Life
In a time when most savings accounts do not even offer 5% per annum, having an investment that can make more than that is attractive. Foreign currency exchange is such an investment arena. For example, the election of Japanese Prime Minister Shinzō Abe in late 2012 has ushered in a sea of Japanese monetary policy change. In December 2012, the USD/JPY averaged USD/JPY 80.0000; by mid-2013, that number was almost 30% higher. The US Federal Reserve’s decision to commence “taper operations” opens the door to even higher USD/JPY levels, since such a decision will result in higher US interest rates. Indeed, from a technical analysis point of view, the pair’s very bullish, daily chart, “pennant formation” portends USD/JPY 125.0000 sometime in 2014.
Are You Ready To Trade Foreign Currency Exchange?
If you are interested in following – and, possibly, investing in – the USD/JPY, open up a daily (or even a 4-hour) chart and add a “Williams Alligator” to it. This will allow you to see potential buy/sell trades come and go. If you put an “Awesome Oscillator” on the same chart, you will also be able to see the rise and decline of momentum waves pulsing through the pair (which enables to you to launch a trade on rising momentum – a sure way to increase your chances of success). Finally, add a “Know Sure Thing” indicator. This will allow you to surf the momentum impulses in almost perfect synchronization with the opening and closing of the Alligator’s trading signals.
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