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In currency trading what are the indications that a particular currency is going strong or weak?

Since Iam a fresher in forex/currency trading ,I would like to know the inputs and tips in that trade.For Exp: EURO/USD pair I buy euro with usd and in USD/EURO I sell usd with euro .How far it will work

Public Comments

1. news are the best source, and particular events, like jobs data, monetary policy, interest rate cut or up. oil prices.. consumer data or CPI Index

2. I actually work with Autotrading software for automated execution of Forex signals. In your example you are somewhat correct. The EUR/USD is the name of the currency pair. In Forex, you would not refer to it as USD/EUR. You would enter a Buy Trade with that currency pair in which case you would be buying Euros with US dollars. In a Sell Trade you would be selling Euros for US dollars. If you want to learn more about Forex trading, check out these two sites.

babypips.com and forexconfidential.com

3. Get on a forex site and down load a demo account. have a play around for a while and then move up to a $25 account .stay away from stock and shares very expensive
here is a Link to my site have a read there it will give you a good idea what you want to trade in but stay away from binary trading

http://asaptraders.co.uk/index.html

4. You have to learn fundamental analysis in forex trading. It's all about how news can have great impact to the currency fluctuation. Economic news or statistical release from the government such as GDP, interest rates decision, balance of trade, US unemployment claims, non farm payroll and many more.

Here a good article about it for you to get started.
http://www.forex2u.com/guide/forex-newbie/20/usefulness-of-fundamental-analysis-in-forex-trading/

Happy learning and good luck on your trading.

5. Currencies tend trend long term & mean revert.

Have a look at long term charts & you will see that once a trend is in place it tends be in place for a long time before it reverses.

For example, the EUR/USD has been on a consistent upward trend since the start of 2009 - the trading range looks to be tightening so, based on past behaviour, I would expect a largish move within the month.

What drives these trends? - supply & demand.

Look at the BRIC currencies & you will see the currencies trending along with commodity prices.

These trends take place over months and years, so are no much good for short term trading - ie: day trading or weekly trading.

Short term currency trading on 50x leverage is one of the more exciting things you can do with your life.. the risks are way to high for me.

6. Hi,

First of all practice before you invest real money. There are plenty sites that offer demo accounts where you risk nothing (but also gain nothing :( )

As for the relation, it really depends on economy. If there are jobs, there is demand and the currency will go up. When you see that more and more people are loosing jobs, consumption is going down you can expect this currency to go down.

Just follow the news (Bloomberg will be good for this).

7. The site http://www.toptrader.org/ may help it has loads of training videos and a realy cool economic calendar which is a must for any trader!