Make More Money Without Working Extra Hours
How can one extend how far their money will go? Budgeting has been reviewed as a way to make the most of what one has. Another option in more recent years is foreign exchange currency. Currency value for each system has different groupings and relationships. If a person makes a good pairing, then the resulting currency swap makes money on the differing values without working.
Trading Volume
The currency market goes 24 hours a day across the world. Three major trading regions exist Australia, Europe and North America. The regions are synchronized so as to when one market opens the other one closes so continuous trade occurs. An exchanger looks for differences in points between currencies known as pips. The biggest volume happens in the American Europe time span.
Pick the Right Currency
Currency market has high leverage. Financial houses for some trades offer a ratio of 200 to 1 exchange making small movements less than one percent profitable. The risk is equally proportional. Most things in life one once slow, steady and calm but in currency trading volatility becomes the focus. Look for currency pairs around the 150 pips or more range. Here, 30 to 50 swings are where profit occurs. For those that can stand a high risk the Google stocks (British pound/Japanese yen and euro/Canadian) since wide swings occur regularly during the day.
Catalysts
Large market movements happened due to inferences from economic data or how the public perceives the meaning of the data. Checking the stats of the market often, setting up alerts whether email, Google or an RSS feed keeping one up on the economic news of the day gives a trader information to key off of when making decisions.
Strategy
After pairing two currencies, the next most important rule is keeping your stops tight. Monitoring is your best tool for getting profit. If one is unable to monitor, then a “stop order” is possible. In currency markets where items happen rapidly keeping stops tight becomes even more important. Stop orders for entry or exit prices limits loss. A number is assigned to it such as within a 15 point stop of the target stop order point.
Trend
Though monitoring is important watching a screen all day for incremental movements in the market can cause over trading. A sound methodology of assessing what the overall trend will make just as much money than monitoring minute by minute. Currency markets respond in general terms to big macro themes in economics often taking weeks to develop and then to dissipate. Learning to trade with the trend results in profits.
Determining a Trend
Triple moving average filter has become an effective way of discovering a trend. Take simple moving averages or exponential moving averages and lay down a three period, 20 period, a 65 period on an hour chart. If a trader sees the moving averages aligned with the three period with an above the 20 and 65 period, then it is highly likely an upward trend developed. The reverse is true as well for a down ward trend.
It takes work to earn money no matter what. Make your money work for you and take a break once in a while.
Liz Goldman is a freelance forex strategy and finance writer. She writes about advanced trading. To learn more about forex trading visit MahiFx.com
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Category: Forex, Home Business
