Variable Currency Trading Spreads are a GOOD Thing… Currency Trading, your way out of the Credit Crunch
Feb 09

Foreign Exchange, the biggest of all markets

Currency trading is done 24/5 (the Forex market is closed during the weekend). Currently 3.5 trillions of dollars are traded each and every day.  This makes the Foreign Exchange market the world’s biggest and most exciting investment market. In recent years automatic currency trading software - using technical analysis - has made an inroad to locking into and profiting from currency trends.

Forex Trading Systems

Forex trading systems are ideal for reaping benefits from mid- to longterm currency trends, as they occur in all major currencies. The longterm trends in Forex markets represent the state of the economy of the two countries involved in the currency pair. As major economic cycles take years, so do currency trends as a result of these cycles. When choosing currency pairs to trade, it is paramount to have a good long term trend for the pair. Just as important is market liquidity, which enables traders to move in and out of positions quickly.

Currency Pairs

Currencies that offer good trends and liquidity include:

  • US Dollar
  • Euro
  • Swiss Franc
  • British Pound
  • Japanese Yen

Trading without Emotions

Automatic currency trading systems remove emotions from trading.  Emotions are the major stumbleblock that causes the majority of traders to end up down south. Numerous documents about using automatic currency trading systems have been written. An internet search will prove to be very rewarding.  Especially the writings by Van K. Tharpe (about risk control, asset allocation & position sizing) are priceless.

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