Foreign currency trading is a high risk and high reward business. You need to devise strategies to make profits in the market on a sustained basis. Always remember that day trading in foreign currency is not the ideal way if you really want to have a long term perspective.
Day trading in foreign currency exchange is the same concept as day trading in securities markets. You take a short term bet on the price movements of various currencies in your portfolio. Thus you gain or lose depending upon the intra day fluctuations in prices of these currencies. Whether you are long or short at a particular point of time in a day depends upon your assessment of the likelihood movement of prices later on during the day. Let us explain by a simple example. Suppose you are short on Yen in the morning session of trading (meaning that you have sold yen at a price). It means that you expect Yen to decline further in the day so that you would be able to buy back Yen at a lower price and make a profit in the process. Here you are taking a bearish outlook of the market.
On the contrary, if you are long on Yen (meaning that you have bought Yen at a price), it means that you are...
To view and download this full PLR article, you must be logged in. Registration is completely free. Once you create your account, you will be able to browse, search & downlod from our PLR articles database of over "1,57,897+" on 1,000's of niches and 200+ categories without paying a penny. Click here to signup...
