Two days later, we were drinking coffee in our office. Just like I would ask any other beginning trader, I asked him: “Why do you want to trade on financial markets?”
Devaluations and Revaluations vs. Appreciation and Depreciation
This is in contrast to a floating exchange rate system as is the standard among most developed countries where the value of a currency is determined by supply and demand forces in the market.
Examples of using technical analysis on the majors to spot opportunities in the crosses
Here, in this article, we expand the idea of analyzing the crosses through the majors and we take a look at some real world examples of how combined technical analysis on major pairs provided a clue for where a particular cross pair will be moving.
One of those, and also one of the most widely used techniques in the trading world, are the so-called Overbought and Oversold values.
Cross pairs are not moving in isolation – Majors and crosses are closely related
Aside from the relationships that exist between some of the major USD pairs, cross currency pairs also have certain relationships to the major pairs and to other crosses.
Below we have prepared a simple list of differences between poor-quality and high-quality brokers that should help you to get a better view of your current broker.
Nevertheless, many trading opportunities exist among both the major and the minor currency pairs.
Rationales cited behind this thinking include arguments like, major pairs are more liquid, easier to trade, less volatile, less unexpected spiking price action, generally better execution (for short-term trading) and so on.
Everyone knows that money is mere means of exchange. Thanks to it, all proactive activities are simpler and faster, and therefore we can effectively operate with merchandise and services, because it’s the most liquid asset.
Fundamental analysis basically uses underlying economic factors for both countries to forecast future exchange rates for a currency pair.
In fact, feature-wise unregulated brokers will usually offer more, and may generally look much better than regulated brokers. However, it’s very important to keep a realistic perspective and not get sucked in by these tricks because most of them are designed just to steal your money.
It might seem odd at first – trading is mostly about rational thinking, gathering information and analyzing the current state of things. How can that be fun?
In practice, letting a winner run can many times translate a winner turning into a loser and cutting losers early can, in the end, turn out to be cutting a winner prematurely.
And certainly, those are situations we most utterly wish to avoid.
Similarly, we cannot expect the global FOREX market to exist in isolation without getting affected by numerous other variables.
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