I’m here to help give tips for foreign exchange traders to help them become more profitable in this business. There is a huge opportunity in this market for the little guy from home to compete along side big corporations and banks, to make a nice profit for themselves.
- The Federal Reserve: Also known as “the fed” is the central bank in the United States. You probably would of heard on the news or school that this institution has one specific function; controlling inflation. I suppose in a sense, it does, but it plays a far larger role: controlling the supply of money. I’m sure you were aware that as an economy grows, money needs to be added to balance things out, well, it is added in the way of loans and credit in the banking system. As the fed changes interest rates, the market is more or less likely to get loans. Therefor, lower interest rates mean more people will get money, increasing the supply of money. Higher interest rates mean less people will get money, lower the supply of money. A high supply of money lowers the price of the currency and a lower supply of money has the price going up.
- Economic News: Every morning, anywhere from 8:30am to noon there is scheduled economic news coming out. This makes this time the most important to follow the news, so you know what is coming out and what is expected out. This news is the foundation that holds up a currency and you need to ensure that this foundation is strong. If GDP is higher than expected, currency will go up. If employment rates are better than expected, currency will go up.
- Risk & Reward: You should always be looking at this. Professional poker players always look at this. It’s simply looking at how much you have to invest, what is your potential profit and what are the chances of this happening. You need to constantly be looking at this because it can make you a more aligned and smart trader.
By: Tyler Ziggler
I’m currently giving a 7 day free forex training course. Newbies and experienced are all welcome. If you’re interested in participating, check out the Casual Forex Trader.
Posted in Articles
