Success Of Forex
How to make money on Forex? Do you know?
Well, you have to go back to basics. That makes the currency up or down in price in the market Forex. As a rule, it is whether this country takes in more money and benefits. Like your home, if you see your current account has steadily declined in price, you are not feeling very well. And if you go to borrow money, you will pay higher interest rates.
However, if the value of your checking account is constantly going up. Well, banks gonna love you. They want to lend you money at low interest rates possible. Thus, countries are sort of the same.
Now, how do you get these numbers? You can return to Bloomberg or Reuters to look for him. But the easiest way to go to your bookstore and get ‘The Economist’ magazine. When you go to a bookstore and you are going to buy an economist, it is worth about $ 4 dollars.
There is a table on the back of the magazine, which is published every two weeks. And the negotiations that brought the country more money than it spends. Or spend more money than it is bringing in. This is defined as the current account. If the current account is negative, in our way of thinking you want short of that currency. If the current account is positive you want to be a long time with this currency when trading Forex.
For example, in the United States, our current account is now around 5% of GDP. As for me means that you probably want to stay short U.S. dollar, relative to other currencies that have more money going into who will it be? Yen, of course, the euro and swiss franc.
Thus, the economist table is the best place to start.
Make sure that you follow these rules when you are trading Forex:
1. Strive for 20 pips from the outset.
2. The MACD is used only for the divergence, confirming a trend. Do not use it as a signal generator.
3. Make sure that you are using stop losses at 20 to 30 points. I want to clarify that. If you put a stop to this. Make sure that the stop at 20-30 pips from the point of the rod. However, if you have debts with a hammer. The difference between a hammer. My rule is to keep you from this trade. But this is an exception, where you see a long throw this rule does not apply. Because when you see a long throw, you know that the cost are going change
4. Specialize in one currency.
5. Keep a journal.
6. Sit on your hands if you see something done.
7. This is not about scalping.
Before you decide to make a forex investment or start forex trading yourself, better find a good forex book and read more about the currency exchange market – this will save you from tons of troubles and traps.
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