Trading foreign exchange Sydney can be a marvellous experience if you’re a morning person. Most banks are in the market and trading volumes are relatively high. With Tokyo opening up an hour later, a wider trading base is all but assured. Beginners may want to test the water by doing some low-leveraged day trading in either the AUD/USD or AUD/JPY. These 2 pairs march to different drummers, so it doesn’t take too long to figure out which one is going to wiggle which way every morning. Sometimes, you can look to the USD/JPY for assistance. If the USD/JPY is going up, that means a weakened JPY (which means that the AUD/JPY may grow wings). If the USD/JPY is headed south, that means a stronger JPY and shorting the AUD/JPY may be the way to go.
Night owls may appreciate the EUR/AUD, which also has a broad-based fan club in London. Shorts need to take care. The weekly chart of this pair is sporting a very bullish “inverse head and shoulders”.
Where To Start Trading Foreign Exchange Sydney
In order master foreign exchange sydney successfully, you need to do at least 2 things. First, you must research what you want to do and how. At a minimum, this means getting on the internet and studying central bank monetary policy, commercial bank forex recommendations and forecasts plus the “market data” sections of Reuters and Bloomberg. (If you’re thinking of trading the AUD/USD, then also reading “xinhuanet.com” every day is a good idea.) Secondly, you need to open up a “demo account” with a forex bank or broker and start practising different trading strategies. You should stay with a “demo account” until 6 out of 10 trades are profitable and your losses are minor. No 2 “demos” are the same; shop around.
Putting The Right Amount Of Time In When Trading Foreign Exchange Sydney
Some people enjoy trading all day long; others prefer only to trade during the morning. How much time you want to put into trading is a personal decision. There is no right or wrong amount of time. Day traders may prefer to only trade in the morning, as hourly trade volume is usually higher and liquidity is better. On the other hand, if you’re thinking of trading the EUR/AUD, you may want to carve out some evening time to watch how London opens. Average daily turnover in London is now over USD 3 trillion/day, so things can really move when the city is open for business. Stay away from Fridays and any weekend; low liquidity can be an issue.
Important Advice For Trading Foreign Exchange Sydney
Forex market research on trading in Sydney shows that Wednesday is the highest volume day of the week, followed by Tuesday, Thursday, Monday and Friday. Morning sessions typically have more participants than afternoon sessions. If you’re thinking of day trading, you might want to consider only being in the market Tuesday, Wednesday and Thursday mornings. Don’t worry that there won’t be enough action for you to make some money. Historically, the AUD/USD ranges over 80 pips every 24 hours; ditto with the AUD/JPY and the EUR/AUD. Since China is wont to issue economic statistics on Saturdays, every effort should be made to avoid carrying any trade through a weekend. For the same reason, Monday mornings in Asia can be usually volatile.
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