Aside from the stock market trading system, another captivating realm to be addicted to is the FOREX. One of the good advantages of the trading currencies is the fact that the market is open 24/7.

There are at least 8 major currencies available for trading and over 17 derivatives of them. Moreover, there’s always some piece of economic data slated for release that traders can utilize to inform the positions they take.

The following are the eight major currencies to concentrate on: U.S. dollar (USD), Euro (EUR), British pound (GBP), Japanese yen (JPY), Swiss franc (CHF), Canadian dollar (CAD), Australian dollar (AUD), and New Zealand dollar (NZD). From these currencies, you can have some liquid derivatives. They include EUR/USD, USD/JPY, AUD/USD, GBP/JPY, EUR/CHF, and CHF/JPY.

Usually, the currencies traded span the entire globe. This means that you can choose the currencies and economic releases to concentrate on. But, as a general rule, since the U.S. dollar is on the “other side” of 90% of all currency trades, U.S. economic releases tend to have the most prominent impact on the market.

When trading news, you first have to know which releases are actually expected that week. Second, it is vital for you to know which data is important. Generally speaking, the most important economic releases cover interest rate decision, retail sales, inflation, unemployment, industrial production, business sentiment surveys, consumer confidence surveys, trade balance, and manufacturing sector surveys.

This entry was posted on Monday, June 25th, 2007 at 2:25 am and is filed under Stock Trading. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.