Investing in Forex remains convenient?

Investing in Forex remains convenient?

The economic crisis carries several victims consistently, we often hear about market expansion, Will the market the cost decreases and the cost rises each morning news is the opening of European markets, positive and negative numbers that seem to creep chance on our first cup coffee. But what is moving the market and, above all, certainly not be able to join?

Investing in Forex remains convenient?, Investing in Forex, Forex

And if I told you that coffee may have a different flavor, if I told you it might be a reward after the results after 30 minutes to an investment that is impossible? For the retailer all practice, therefore, 9: 00 am, after the investment and exploitation of livestock by the volatility that creates an open market, coffee has a completely different flavor.

The first step to becoming an operator

Becoming a trader, of course, is not impossible. The merchant ship, as an electrician, plumber, engineer, etc. You can not improvise, study and practice. Forex is a guide that allows you to create a real sense of commercial vehicles. Fortunately, nothing costs the practice, in fact, all forex brokers offer a free demo account that simulates the investment, and then start using it.

As for the theory, unless the currency market action you need to know technical analysis and fundamental analysis.

First, it is important to learn to analyze the price chart, which is possible thanks to the study of technical analysis. Once you master the basics of the evolution of the price discipline will again have the same look, it's like I started reading things I never imagined existed, that information, without the knowledge of technical analysis, it is impossible to detect.

The mechanisms that regulate the forex market

To be a good trader, you need to enter in the mechanisms that regulate the forex market, find out what it is and how the market moves, and then examine the different strategies to be implemented for investment success. We focus our attention on what the currency market, and try to understand how it develops and how it works. The first thing to say is that this market is always open, H24, Monday to Friday; and because it makes us realize the potential of the currency market.

Investing in Forex remains convenient?, Investing in Forex, Forex

So the first thing to do is to understand all the mechanisms that are related to this market, the List of the main squares, as in any currency, exchange, eg in some cases are very intense, respect for others times.

For example, if we consider the time in New York, who see the foreign exchange market opened the day at 8 in the morning to close the 17, here is the volume of trade recorded equal to 20% of all movements foreign exchange; while in London, opening at 3 pm, New York time, and closes at 12, with trading volume reaching 35%; which held the first step on the podium as the most important market.

Gradually another country, such as Sydney that opens and closes at 2 am 17, with 4% of trading volume, or Tokyo, which opens and closes at 19 am from 4 to 6% the volume of operations, say you want to invest in the movement of the yen, as Japanese currency, then you will go to concentrate their business in those moments when the Japanese market, where trade is opened and, therefore, the greater between different local brokers.

The basic concept of currency: PIP

When we talk about the currency, we can not ignore the fundamental concept that the PIP, or point percentage, this is the number of percentage points on the disk where then calculate the profits of traders who invest, or calculate the losses produced during an unfortunate investment. When choosing a platform to do a lot online, it is important to keep in mind many things, including the leverage offered, and we will use when investing.

A wide range of platforms for merchants

The network, now offers a wide range of platforms do online trading. They are experienced investors or a beginner, the online broker are many, but all offer a wide range of currency pairs, all without fees to pay. E 'is possible, therefore, for the same cross and work up or down, will do the best is the volatility that has always marked the forex market. This will cost, except for spread course.

economic indicators

Economic indicators are quite important to understand price movements in the forex world piece. For this reason, variables, and then consider them continued strong in the careful and continuous; using what the major currency trading platforms, so, what we have just said, the entire economic space is continuously updated macroeconomic data are daily from different institutions. All these data and then must be evaluated individually, to understand what can go affect the strong market, causing instability in the exchange.

Among the economic indicators, PIL This is undoubtedly the most important, which is a measure of what is the current state of the economy. As a final number, this value comes later than the period in question; and this is the reason why the market will be carefully evaluated as pre-report and the preliminary report, request information, even if it is, allow assessment of what would become the final figure that PIL the previous quarter.

other indicators

Then there are the retail, ranging measure which is the strength of domestic demand, the nation, and as a result of the economic situation in the country and the propensity to consume those in the territory. This indicator then becomes important because it is the expected cycle and the next review, which often goes to emphasize the volatility.

Industrial production is an important indicator because it shows what the state of the country's economic system. Therefore thermometer if the state is increasingly industrial production, then it means the boom; but be careful, however, the relationship between productivity and inflation, but because it can make a change in value. inflation data that predicts a possible evolution of the monetary policy pursued by central banks, which, of course, then affect not only on differential rates, which are very important to the trend of the currency.

To close this series on indicators must not forget the ISM non-farm payrolls, more orders for durable goods, estimated production rates and sales of brand new homes; and the report of the most important and expected private things on consumer confidence compiled by the University of Michigan.

How to properly use this information to generate money with Forex?

We have seen that the information becomes important when investing in this market currencies. Then we will investigate how to use all this information that we receive every day, to be a bit better use.

The first thing to do is always get their hands on the macro economic calendar for the coming week. This is because often the market is moving, following the trends, even before the news that the movement pilocarpine. Once this is done, it is important to go to select, as indicating that at this stage in the market act as catalysts.

It should, therefore, properly assess the deviation from the above data, which are the forecasts provided by analysts in the market, it happens very often that the data looked bad, is in favor of uniforms, against all probabilities. The last thing to do, therefore, you should never respond to this sudden when some news. It often happens that the data in the previous month, if meticulously checked, you can move the market, on the other hand, those who predict.

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