Exploiting Information About Economic Growth

Interest rate and inflation levels are the main ingredients of forex price movements, and economic growth data follows closely in shaping the currency flows. Countries that are experiencing economic growth generate more jobs in their economy. Consumer spending therefore increases. In turn, the demand for housing increases as people have more disposable income and can better afford housing. Other sectors, such as the auto sector, also experience changes in demand as consumers' propensity to...

Scalper

The scalper has the goal of a quick trade for small but leveraged profits. The scalper prefers to trade frequently for small moves instead of working for larger moves. The scalper focuses on the goal of taking profits quickly from the market and trades in a very limited time frame. Scalpers focus on the most recent price action and on small time intervals, from 10-minute candles to 1-minute candles. The trader seeing a high probable trade can decide to put on multiple lots and then attempt to...

Quick Back Testing with Excel

Initial back-tests can be easily done in Excel. Simply paste your historical time series into Excel, enter your formula, and apply it to all cells in the time series. The easiest way to express this is by assigning each type of market position by a -1 (sell), 0 (out of market), or a 1 (buy). Then calculate profit or loss, subtracting out a spread and or transaction cost. I recommend mastering Excel thoroughly before buying an expensive back-testing tool. This ensures that you know how...

Find Other Equities that Provide Insight into the Housing Market

In this assignment, the trader should select the top equities that represent aspects of the housing sector and start watching their weekly performance. When these housing equity stocks start probing their weekly support, resistance, and trend lines, the trader will have clues as to a potential change in the housing market. As discussed earlier, housing provides a strong indicator regarding interest rates throughout the world. For example, as 2006 ended, the situation in Great Britain regarding...

New Zealand Dollar Kiwi

The New Zealand dollar, also known as the kiwi, should get more of the attention of forex traders. New Zealand is almost a classic example of how fundamentals can drive currency movements. The New Zealand economy is small. It exports about 2.8 billion and imports 3.4 billion. Since its consumer economy is small, the fundamental characteristic that affects its economy is whether its exports can grow. Therefore, interest rates and the resulting currency valuation are key to its future economic...

Fundamental Personalities of Currencies

If each currency's value is a reflection of the underlying economy of its country or region, we can begin to think of them as having a fundamental personality that can guide our strategies for trading. This chapter focuses on how a trader can gain an understanding about the strength and weakness of a currency. The concept of a trade-weighted currency basket is introduced as well as how to obtain the latest trade-weighted information and data that can be directly used in trading. TRACKING...

Find the MEW Rates in Canada Australia and the United Kingdom

This will take some exploration on the Internet, but it is worth tracking. What is important to realize about fundamental analysis of housing sector data is that the trader can identify pending changes in trends and direction of the economy. Of course, it is true that forex prices move all the time in reaction to news and the like, but economies don't change direction overnight. By understanding housing data, one can develop a fundamental viewpoint that leads to trading strategies before...

About the Author

Paige Cofnas

Abe Cofnas has been the forex trading columnist of Futures magazine since 2001 and has been a leader in designing and delivering forex training courses. He has conducted seminars in the United States, London, and Dubai as well as online training in all time zones. Mr. Cofnas founded www.learn4x.com in 2001 as the desktop forex trading industry started to provide education and training in this field. He recently founded www.currencygames.com, a company providing forex education and global forex...