By Ray Timus
A crucial issue in Forex investing is to deal with all that information that flows into the market. How you manage this area is up to your knowledge level.
You might find yourself being in one of the two situations: a forex beginner, or already a trader. If you are a forex beginner, start with learning about the market and its concepts, then play on a demo account and then, in a third stage of learning, start trading for real. You go back from time to time to upgrading your knowledge, simulating on a demo and then again trading for real, so you should see this as a continuous process.
On the other hand, if you are already active in the forex field, you should search for continuous improvement of your knowledge, regarding technical analysis, as well as fundamental analysis that has to do with international economics.
An important tool every trader should watch is the Economic Calendar, where you see chronologically the most important economic data that come from the big economies in the world. This is critical, as the data can influence also other markets, like the stock market or the bond markets.
The most traded currencies in the Forex investing world
In a 3 trillion dollar market a day, some important currency pairs concentrate almost all the interest of market participants.
First we have the “majors”, standing for the most traded currencies, representing the important economies in the world: USD – the American dollar, EUR – the European currency, GBP – the British pound, JPY – the Japanese Yen, AUD – the Australian dollar.
Secondly, we have a range of big economies or mid-sized economies, which represent different type of countries. Some economies are linked to services, like New Zealand, and here we have NZD – the New Zealand Dollar, other economies are linked to natural resources: CAD – the Canadian Dollar, RUB – the Russian Ruoble, BRL – the Brazilian Real, NOK – the Norwegian Kroner.
A separate category is RMB – the Chinese Reminbi (or Chinese yuan), because here we don’t have a full flexibility of the currency. Even though China is one of the biggest economies in the world, its currency has very limited fluctuations, and might not seem as interesting for forex investing. It is expected that in the future the importance and the flexibility of the Chinese currency will grow.
See all you need to know about Forex on www.forex-bestglobaltrading.com where you can find multiple resources on technical analysis, how to choose a broker, Economic Calendar and many other useful tools in the forex investing activity.
About the Author
Expert in Forex trading and stocks trading, having my own company in this field since 2006.
