Make Money Trading Forex
World and national events drive the relative values of the US dollar, British Pound, Euro, Yen, Russian Ruble, Brazilian Real, Indian Rupee and other currencies up and down. Currencies are traded in pairs, one for another. Thus one can make money trading Forex currencies. To make money trading Forex one uses the same sort of approach as with trading stocks or commodities. It is important to understand the fundamentals that drive currency values and it is important to use statistical tools to analyze market sentiment. Fundamentals are what eventually determine currency values but market sentiment can drive prices up and down on the way to a final price. And, because fundamentals can always change this is a constant matter of research and analysis. Nevertheless, in the end one can simply learn what to do, how to do it, pay attention and make money trading Forex. Here are a couple of examples of how to make money trading Forex with a currency trading system.
The Mighty Dollar
The US dollar is part of eighty-seven percent of all Forex trades, followed by the Euro, Yen and Pound. This table shows the most traded currencies in the world.
see table at www.ForexConspiracyReport.com
The seven currencies in the table are called the majors. They trade in higher volume and offer greater liquidity than other currencies. Because daily foreign exchange trading averages $5.3 Trillion even the lowest ranking Canadian dollar trades at $243.8 Billion a day as valued in US dollars. On an average day $4.6 Trillion US dollars are traded. Many traders make money trading Forex by sticking with the major currencies. Because of their high trading volume and liquidity statistical tools work well. Traders use Forex candlestick strategies or similar tools to accurately anticipate price changes. They enter the market and set their trading stops. Then they exit when they have a profit or to contain losses if their analysis is incorrect. Traders take advantage of the predictability of major Forex pairs to make predictable profits.