practical approaches to forex

34
By www.ForexConspiracyReport.com Practical Approaches to Forex

Upload: investingtips

Post on 24-Jul-2015

67 views

Category:

News & Politics


1 download

TRANSCRIPT

Page 1: Practical Approaches to Forex

By www.ForexConspiracyReport.com

Practical Approaches to Forex

Page 2: Practical Approaches to Forex

http://www.forexconspiracyreport.com/practical-approaches-to-forex

/

There are several practical approaches to Forex trading.

Page 3: Practical Approaches to Forex

http://www.forexconspiracyreport.com/practical-approaches-to-forex

/

These depend first of all on why you are trading currencies.

Page 4: Practical Approaches to Forex

http://www.forexconspiracyreport.com/practical-approaches-to-forex

/

Before We Continue…Click the links below to get your

FREE training materials.

Free Weekly Investing WebinarsDon’t miss these free training events!

http://www.profitableinvestingtips.com/free-webinar

Forex Conspiracy ReportRead every word of this report!

http://www.forexconspiracyreport.com

Get 12 Free Japanese Candlestick VideosIncludes training for all 12 major candlestick signals.

http://www.candlestickforums.com

Page 5: Practical Approaches to Forex

http://www.forexconspiracyreport.com/practical-approaches-to-forex

/

Second practical approaches to Forex depend on the depth of your knowledge about specific currencies.

Page 9: Practical Approaches to Forex

http://www.forexconspiracyreport.com/practical-approaches-to-forex

/

Trillions of dollars-worth of currencies are traded daily to pay for goods and services produced in one nation and consumed in the next.

Page 10: Practical Approaches to Forex

http://www.forexconspiracyreport.com/practical-approaches-to-forex

/

When a Japanese airline purchases jets from Boeing they need to pay in US dollars.

Page 11: Practical Approaches to Forex

http://www.forexconspiracyreport.com/practical-approaches-to-forex

/

It takes 83 days to build, test and deliver a Boeing 787 Dreamliner.

Page 12: Practical Approaches to Forex

http://www.forexconspiracyreport.com/practical-approaches-to-forex

/

If your company is not first in line it may take a year or more to get your jet after signing the contract.

Page 13: Practical Approaches to Forex

http://www.forexconspiracyreport.com/practical-approaches-to-forex

/

And some airlines stagger their purchases to take delivery of a few planes each year.

Page 14: Practical Approaches to Forex

http://www.forexconspiracyreport.com/practical-approaches-to-forex

/

A problem arises in that the Japanese government is trying to devalue the Yen in order to boost Japanese exports.

Page 15: Practical Approaches to Forex

http://www.forexconspiracyreport.com/practical-approaches-to-forex

/

Because the price of the airplane is paid in US dollars, that could be a problem.

Page 16: Practical Approaches to Forex

http://www.forexconspiracyreport.com/practical-approaches-to-forex

/

One of the practical approaches to Forex in this case is to purchases Forex options, specifically calls on the US dollar with the Japanese Yen.

Page 17: Practical Approaches to Forex

http://www.forexconspiracyreport.com/practical-approaches-to-forex

/

The airline purchases a call option for sufficient US dollars to pay for a Boeing jet.

Page 18: Practical Approaches to Forex

http://www.forexconspiracyreport.com/practical-approaches-to-forex

/

When the time comes to pay one of two things will happen.

Page 19: Practical Approaches to Forex

http://www.forexconspiracyreport.com/practical-approaches-to-forex

/

If the Yen has fallen against the dollar the airline will execute the options contract and purchase dollars at the old, lower price and pay for the jet.

Page 20: Practical Approaches to Forex

http://www.forexconspiracyreport.com/practical-approaches-to-forex

/

If the Yen has risen against the dollar the company lets the contract expire and buys the jet with the now-stronger Yen.

Page 22: Practical Approaches to Forex

http://www.forexconspiracyreport.com/practical-approaches-to-forex

/

There are fundamentals that eventually determine the value of one currency versus another.

Page 23: Practical Approaches to Forex

http://www.forexconspiracyreport.com/practical-approaches-to-forex

/

Balance of payments, strength of an economy and central bank policy all help determine how much traders will pay in US dollars for the Euro, British Pound, Yen etc.

Page 24: Practical Approaches to Forex

http://www.forexconspiracyreport.com/practical-approaches-to-forex

/

Currency traders who are well versed in the fundamentals that drive currency prices can swing trade currencies and profit over a few days, weeks or months.

Page 26: Practical Approaches to Forex

http://www.forexconspiracyreport.com/practical-approaches-to-forex

/

It requires that the trader do his homework and keep up with the market.

Page 27: Practical Approaches to Forex

http://www.forexconspiracyreport.com/practical-approaches-to-forex

/

A fundamental approach to trading currencies is probably more effective than a technical approach when trading minor currencies because of the low volume inherent in the currencies of small countries.

Page 29: Practical Approaches to Forex

http://www.forexconspiracyreport.com/practical-approaches-to-forex

/

Hundreds of years ago traders in Japanese rice markets and Dutch tulip markets found out that certain price patterns repeated themselves.

Page 30: Practical Approaches to Forex

http://www.forexconspiracyreport.com/practical-approaches-to-forex

/

It was possible to trade solely on the basis of the pattern of the previous several days.

Page 32: Practical Approaches to Forex

http://www.forexconspiracyreport.com/practical-approaches-to-forex

/

Thus anyone trading US, Canadian or Australian dollars against the Swiss franc, British pound or Euro can expect good liquidity and accuracy of the technical tools that are critical to profitable technical trading.

Page 33: Practical Approaches to Forex

http://www.forexconspiracyreport.com/practical-approaches-to-forex

/

For many day trades this is the best of the practical approaches to Forex.

Page 34: Practical Approaches to Forex

http://www.forexconspiracyreport.com/practical-approaches-to-forex

/

Traders are in the market for only minutes at times, executing trades and leaving with profits.