Print Article
  BookMark Article

Author Login    Author Login

Existing members will have to use the lost password facility to get new username and new password

Welcome Guest! Please login or create an account.



If you do not have an account yet, you can register ( Here ), or you may retrieve a lost user/pass ( Here ).

Navigation    Navigation

   10 newest articles RSS

Author Highlights    Featured Author

Daniel Kreg


View My Bio & Articles

Henry Guide

View My Bio & Articles

James Dawson

"I enjoy writing"

View My Bio & Articles

Other Websites    Websites of Interest

Advanced Keys To Become A Successful Forex Trader

Author : Alex Harper

Trading forex is a challenging endevour as there are many factors that you need to be aware of simultaneously. When you are trading currency pairs, you are betting on one country's currency strength versus another country's currency strength. With the majority of currency trading, you are focussed on a particular currency and the US dollar.

It is extremely important to be aware of major news announcements that come out during the trading day which affect the currency you are trading and especially the US dollar.

Another factor to be aware of is "risk on, risk off". There are days when people are wanting to take on "more risk", these are the days when they stock markets are going up. You can look at the S&P 500 or Dow Jones Industrial Average to get a feel for whether investors are taking on risk or taking off risk. How it has been for the last few years is that in the times when the stock markets are selling off, the US Dollar becomes stronger. You can think of it as people are selling their stocks, more US dollars are flooding the markets. This may change in the coming years especially if the US dollar loses it's status as the reserve currency.

Generally on the days when the stock markets are going up and investors are taking on risk, the Euro/USD, GBP/USD and AUS/USD will also go up. On the days when the stock markets are going down the Euro/USD, GBP/USD and AUS/USD will also go down. This is a general statement as there are other factors which will influence like major news announcements. For the AUS/USD pair which is known as a "commodity pair", it's very influenced by the price of Gold. Likewise the other major commodity pair, the USD/CAD is influenced greatly be the price of oil.

These factors are important to take into consideration. It's a very good idea for many strategies to have an overview of what is happening with the US Dollar Index which measures the strength of the US dollar versus the EUR, JPY, GBP, CAD, CHF and SEK. A large part of the weighting of the US Dollar Index (USDX) is with the EURO. One strategy that can be used in trading the Euro is observing the US Dollar Index in realtime as it tends to be a mirror for the Euro. Notice when the USDX is at support and resistance levels.

Keeping these factors in mind can give you an edge in your forex trading.

Author's Resource Box

ForexMentor is the most well known forex education provider. Visit today to browse for a high quality forex trading course.

Article Source:

Tags:   forex training, currency trading course, learn forex trading, forex course, forex scalping, forex coaching, free forex training

Author RSS Feed   Author RSS Feed     Category RSS Feed   Category RSS Feed


  Rate This Article
Badly Written Offensive Content Spam
Bad Author Links Mis-spellings Bad Formatting
Bad Author Photo Good Article!




Submitted : 2011-02-01    Word Count : 448    Times Viewed: 519