Forex Focus: Making Sense Of Currency Movements by Grace Cheng With currency movements so randomized, how could you possibly know when to enter and exit trades? One of the most frequently asked questions among forex traders is certainly this: What on earth is [any currency pair] doing? This question tends to come up especially when you have open positions in the forex market. The nonstop fluctuations of a currency pairs exchange rate may seem totally random. Some traders will question if it is possible to even trade accurately in such a random market. Making sense of currency price movements is not transgenic science. Once you know the core behavior of currencies, you will find it easier to understand their movements and exploit them for profitable trading opportunities. FUNDAMENTAL BEHAVIOR OF CURRENCY PRICES Currency pairs either move in a trend or within a range. This concept is so simple and yet so revealing that I have to say it again. Currency pairs either move in a trend or within a range. Once you digest this fact, you will come to the realization that currency price behavior can be understood to a large extent and exploited to your advantage.

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An effective way to reverse a trade’s fortune
Almost all trading books focus on “winning” trades. But winning trades can be hard to come by, especially when you’re just starting out. “Turning Losing FOREX Trades into Winners” takes a look at this discipline from a different angle, examining effective methods for dealing with trades that are in a losing position. First, it guides the trader through the various steps of determining if a trade is with or against the overall trend. Then, it explains how to decide when a trade should be closed or left open. While this reliable resource is filled with in-depth insights and expert advice that will help readers gain a better understanding of today’s FOREX market, it also contains hundreds of chart examples that will provide step-by-step instructions on how traders can recover from losses.

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Stocks & Commodities V. 24:6 (16-18): Forex Focus by Darrel Jobman Access to foreign exchange trading has opened up exciting trading options for the retail trader. You can now trade alongside corporations and institutions in a highly liquid market that is global, traded around the clock, and highly leveraged. Before jumping into this market, however, we must understand the factors that affect the forex market. With that in mind, STOCKS & COMMODITIES has introduced Forex Focus to better prepare the retail trader to participate in the currency market. Q: Is the yen really turning around? A: Over the last five years, the Bank of Japan has been engaged in a prolonged battle to combat deflation in the Japanese economy to bring conditions back to normal. The central bank already cut interest rates to zero in 2001 but took the additional step of flooding the market with excess liquidity. The bank adopted a quantitative policy with a target of 30-35 trillion yen for current account deposits held by the commercial banks. A second element of the policy was to intervene aggressively to prevent yen strength, as a stronger currency would have put further downward pressure on domestic consumer prices. The Japanese central bank, under the direction of the Finance Ministry, intervened heavily to prevent yen gains through the 100 level against the US dollar in the first quarter of 2005, although there has been no need to step in over the last 12 months, given the general dollar gains.

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