Forex Blog - Trading to success!!

Wednesday, January 14, 2009

Todays Trade Jan 14 2009

Short in 1.4630 area (resistant area)
- GU still got plenty room to dive downside.. ONLY SHORT/SELL trade for minimizing the risk.

Short in 1.433x area
- EU probably hike up for a little retrace before continue their journey to south. Main channel/trendline still showing south.

Short in at 90.00 area
- 88.8x is solid support to penetrate, UJ going up and find next resistant before going down again.

Which pair do I trade

I trade mainly EUR/USD, GBP/USD, USD/JPY and sometime EUR/JPY, GBP/JPY.
Mainly using pivot line, trend line, channel, moving average as my main indicator. If you're asking, why I only using basic indicator... It is because those indicators are the basic things you should know before start currency trading aka forex trading. Once you understand most of basic indicators, then you are ready to try the FOREX Trading using other indicator of your choice.

Forex - what it is?

The foreign exchange (currency or FX) market is where currency trading takes place. FX transactions typically involve one party purchasing a quantity of one currency in exchange for paying a quantity of another. The Foreign Exchange Market that we see today started evolving during the 1970s when worldover countries gradually switched to floating exchange rate from their erstwhile exchange rate regime, which remained fixed as per the Bretton Woods system till 1971.

Today FX market is one of the largest and most liquid financial markets in the world, and includes trading between large banks, central banks, currency speculators, corporations, governments, and other institutions. The average daily volume in the global forex and related markets is continuously growing. Traditional daily turnover was reported to be over US$ 3.2 trillion in April 2007 by the Bank for International Settlements. [1] Since then, the market has continued to grow. According to Euromoney's annual FX Poll, volumes grew a further 41% between 2007 and 2008. [2]

The purpose of FX market is to facilitate trade and investment. The need for a foreign exchange market arises because of the presence of multifarious international currencies such as US Dollar, Pound Sterling, etc, and the need for trading in such currencies.