Description:
An introduction to forex trading
Contents:
The issues with being a contrarian
A contrarian trader is one who trades against market sentiment. As has been demonstrated in bubble after bubble, when everyone is buying, prices are generally too high to be justified by fundamentals. This is a common sign of a market bubble, which makes it a good time to sell. Similarly, when everyone is selling in … Continue reading »
Five potential outcomes of the eurozone crisis
Graphic from ZeroHedge.
How the Greek bailout package works
Not my work, but amusing :p It is a slow day in a little Greek Village. The rain is beating down and the streets are deserted. Times are tough, everybody is in debt, and everybody lives on credit. On this particular day a rich German tourist is driving through the village, stops at the local … Continue reading »
The Norwegian Kroner as a safe haven?
Post the Swiss National Bank pegging the CHF to the EUR, with a minimum exchange rate of CHF1.20, forex traders have been scurrying to find a new safe haven, and some have been turning to the Norwegian Kroner (NOK). Norway has a strong fiscal position with a positive account surplus, a fiscal surplus and a … Continue reading »
Trading forex with the US trade balance report
The monthly US Trade Report shows the difference between US exports and US imports. If the trade balance is positive, then the value of exports is higher than that of imports, and if the report is negative the value of imports is higher. An economy with a positive trade report is a growing economy, as … Continue reading »
Correlating currencies the EUR and CHF
The EUR/USD and USD/CHF have a nearly perfect inverse correlation, often over 90%. That means that, 90% of the time, when one forex pair rises the other will fall and vice versa. The foundation of the relationship Over a 12-month period, most currencies that trade against the US dollar have a correlation of above 50%. … Continue reading »
Use currency correlations in your forex trading
Use currency correlations in your forex trading Correlation is the measure of the relationship between two assets. A correlation of +1 means that their prices move in the same direction, to the same degree, 100% of the time, while a correlation of -1 means that the assets have a perfect inverse relationship and that they … Continue reading »
Use government intervention in your forex trading
Valuing currencies The forex market revolves around the value of currencies in relation to the values of other currencies. These values play a large economic role, especially in the prices of imports and exports. Currencies are either valuated by the market, or by governments. In the market, the value of assets is determined by supply … Continue reading »
Explaining the European crisis with lego
Not really forex, but I thought it was pretty cool: The toreador in a floppy hat, and the F1 driver with his helmet, represent Spain, Italy and the rest of the Euro Periphery. The three men with helmets, shields, and medieval weaponry represent the CDU, CSU and FDP parties in Germany. The blue-and-white sailor boy … Continue reading »
Intervention risk in the forex market
The past few months have been a volatile time for the markets, and forex, usually the most liquid of them all, has been no exception. Considering the US debt ceiling announcement, S&Ps downgrading US debt from AAA to AA+ and the US and Europes respective debt crises, this isnt surprising. However, another element has been … Continue reading »
Home
|
|
