Monday, March 17, 2008

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REACTING TO NEWS
News or data are always read by the market along the prevailing market bias. Data can provide a good reading for the state of the market. If the data is bad but the price is still rising or not affected, it must be a bull market which means buy on dip strategy is a better one. Conversely, if the data is good but the price is not rising or even falling, it must be a bear market which means sell on bounce strategy is a better one. The inflexion point must be when bad news or good news. no longer affect the prices as they have done before. Medium/long-term bias changes are usually accompanied by such reactions to the news. It is not the numbers that counts but how the market reacts to the numbers that counts. That gives some comfort to those who are not privy to the numbers already

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There are risks in trading foreign currencies. Like any investment, forex investing carries substantial risk. You can lose all of your money and foreign currency trading can be extremely volatile. Make sure you thoroughly research futures trading and foreign exchange trading entirely before setting off on your adventure.

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Corrections may take days or longer to complete. Good quality info is everything in this game. Bottom picking in the Usd/Jpy is the Mother of all risky trades. We learn how to trade till we stop trading and we learn from each other everyday. That is the beauty of trading and life in general.

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Carry Trades Will Continue to Suffer

Mon, 17 Mar 2008 21:47:19 -0400
USD/JPY fell to the lowest level since September 1995 and we expect the currency pair to continue to weaken.


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