Trading Trends: A Guide to Foreign Exchange Markets
Everyone would love the chance to make their money work for itself. Those not overly astute when it comes to financial wheeling and dealing may be content with shoving all their spare cash into a high-interest savings account and enjoy an annual cash windfall from their bank. Others may choose to invest money in their home by building an extension, thus increasing its sell-on value.
However, those with a natural flair for money-making ventures may want to explore other investment opportunities, whether it’s playing the stock market or putting money into new business start-ups in exchange for a percentage of the company. Such investments require extensive knowledge and foresight and probably aren’t for first-timers: serious investments require serious skills and experience.
Take the foreign currency exchange market for example. Currencies fluctuate all the time and a strong GBP combined with a weak USD is great for Brits venturing across the pond on their holidays. For investors, monitoring the ups and downs of specific currency pairs is more about making big-buck predictions as opposed to securing a four-star hotel room for the price of a motel.
No investors or traders want to ‘bet blind’. Sure, there’s never any guarantee of an outcome and there is always an assumption of an element of risk in any ‘trade’. Naturally, any trader will buy if they believe a currency pair is on the up, and sell if they think it’s on the down. The sole goal is to make as much profit as possible with any given trade.
Some traders may only be using fundamentals or technical indicators when buying and selling currencies, to help establish high-probability setups. However, Forex [http://saxoeducation.com/Learning/Pages/fx_PricePatterns.aspx] price patterns help inform currency traders. Analysing patterns of previous trades, when specific currencies have been at certain prices levels, gives those with access to this information a big advantage.
With trading, trends should inform decisions, which is why having access to patterns is vital. Will a trend continue? Will it end and move into reverse mode? Nobody can know for sure, but by looking at continuation patterns and reversal patterns, it’s possible to have a better indication of what direction a currency pair is likely to head.
By buying and selling at the right time, foreign exchange market traders can help ensure they maximise their profits. Nobody can know without the benefit of hindsight exactly when the right time is, however, but by analysing price patterns and previous trends, traders can ensure they get as much bang for their investment bucks as possible.
Adam Singleton writes for a digital marketing agency. This article has been commissioned by a client of said agency. This article is not designed to promote, but should be considered professional content.
However, those with a natural flair for money-making ventures may want to explore other investment opportunities, whether it’s playing the stock market or putting money into new business start-ups in exchange for a percentage of the company. Such investments require extensive knowledge and foresight and probably aren’t for first-timers: serious investments require serious skills and experience.
Take the foreign currency exchange market for example. Currencies fluctuate all the time and a strong GBP combined with a weak USD is great for Brits venturing across the pond on their holidays. For investors, monitoring the ups and downs of specific currency pairs is more about making big-buck predictions as opposed to securing a four-star hotel room for the price of a motel.
No investors or traders want to ‘bet blind’. Sure, there’s never any guarantee of an outcome and there is always an assumption of an element of risk in any ‘trade’. Naturally, any trader will buy if they believe a currency pair is on the up, and sell if they think it’s on the down. The sole goal is to make as much profit as possible with any given trade.
Some traders may only be using fundamentals or technical indicators when buying and selling currencies, to help establish high-probability setups. However, Forex [http://saxoeducation.com/Learning/Pages/fx_PricePatterns.aspx] price patterns help inform currency traders. Analysing patterns of previous trades, when specific currencies have been at certain prices levels, gives those with access to this information a big advantage.
With trading, trends should inform decisions, which is why having access to patterns is vital. Will a trend continue? Will it end and move into reverse mode? Nobody can know for sure, but by looking at continuation patterns and reversal patterns, it’s possible to have a better indication of what direction a currency pair is likely to head.
By buying and selling at the right time, foreign exchange market traders can help ensure they maximise their profits. Nobody can know without the benefit of hindsight exactly when the right time is, however, but by analysing price patterns and previous trends, traders can ensure they get as much bang for their investment bucks as possible.
Adam Singleton writes for a digital marketing agency. This article has been commissioned by a client of said agency. This article is not designed to promote, but should be considered professional content.
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