Starting out in Forex
3 Months ago, I started out a method trading in GBP/USD. I became and sole focus only in this currency pair.
The method I used is a combination of fundamental as well as technical. Understanding the economics and political allow me to determine the direction of the GBP/USD. The technicals using a combination of WMA, EMA, CCI, BB and fabonacci retracement allow me to confirm the direction as determine by the fundamentals and determine when and where is the entry point.
To understand about forex, please go to http://www.babypips.com I find these site useful and easy to anyone who has a interest to understand about the subject to start. The site goes through both fundamental as well as explaination of technicals tools.
The second important thing is to know when and what is the big news. A good site to follow is http://www.forexfactory.com This site allow me to know which day and what time and what news and how volatile is the news. To act after the news is too late, but in general, leading to the announcement of the news, you can also read about the economics and political situation from a number of sites, newspaper as well as television. But to have too many news will cause indigestion. Reading news is just reading news - that is no good. Try to understand the why for a money policy, a fiscal policy, a political decision etc and how these is going to affect the direction of the GBP/USD pair. Fundamentally, ask whether (example) when the Feb raise interest rate, what is the impact of the US economy. Does UK response well? The direction of the GBP/USD pair is determined by the relative strength of the UK/US economy. Not in particular UK but Europe, with Germany as the second largest European economy. But as the US dollars is the most traded currency - note the Swiss and the Yen. On the whole, undertand how any US economic policy affect the European and the Asian market and vice versa.
A good and quick way is to look at how the Asian, European and US market is performing. I usually look at the stock market indicies. http://http://finance.yahoo.com Understand how the performance of the market and what corelationship they have on the GBP/USD pair. This is one of my research topic. I will share more once I have any results.
In the next blog I will share on the technicals. To be continue.
The method I used is a combination of fundamental as well as technical. Understanding the economics and political allow me to determine the direction of the GBP/USD. The technicals using a combination of WMA, EMA, CCI, BB and fabonacci retracement allow me to confirm the direction as determine by the fundamentals and determine when and where is the entry point.
To understand about forex, please go to http://www.babypips.com I find these site useful and easy to anyone who has a interest to understand about the subject to start. The site goes through both fundamental as well as explaination of technicals tools.
The second important thing is to know when and what is the big news. A good site to follow is http://www.forexfactory.com This site allow me to know which day and what time and what news and how volatile is the news. To act after the news is too late, but in general, leading to the announcement of the news, you can also read about the economics and political situation from a number of sites, newspaper as well as television. But to have too many news will cause indigestion. Reading news is just reading news - that is no good. Try to understand the why for a money policy, a fiscal policy, a political decision etc and how these is going to affect the direction of the GBP/USD pair. Fundamentally, ask whether (example) when the Feb raise interest rate, what is the impact of the US economy. Does UK response well? The direction of the GBP/USD pair is determined by the relative strength of the UK/US economy. Not in particular UK but Europe, with Germany as the second largest European economy. But as the US dollars is the most traded currency - note the Swiss and the Yen. On the whole, undertand how any US economic policy affect the European and the Asian market and vice versa.
A good and quick way is to look at how the Asian, European and US market is performing. I usually look at the stock market indicies. http://http://finance.yahoo.com Understand how the performance of the market and what corelationship they have on the GBP/USD pair. This is one of my research topic. I will share more once I have any results.
In the next blog I will share on the technicals. To be continue.
posted by Ernest Seng at 9:12 PM
0 Comments:
Post a Comment
<< Home