Page 47 - Ultimate Guide to Currency Trading

or medium term?
Growth Are there any economic indicators (or proxies for
indicators) that are showing economic growth in
the country?

You might decide that the Norwegian krone has a high likelihood of strengthening against the
euro. You decide to look at the technical before you commit any money to a trade against the euro
and for the NOK. Switching to your charts on your trading platform, you use the technical indicator
software provided by your Forex broker.

You draw lines; some look like waves, others look like mountains and valleys, still others look
like upside-down icicles. After notating all of your observations relating to the technical, you take one
final review of the fundamental information. All the information gets written down in your trading
journal before you trade. Just before you commit to the trade, you decide how much to buy compared
to your overall FX account size. Lastly, you decide on an appropriate exit point, both if there is a profit
and if there is a loss.

Although the currency world can be fast paced, it is best that you take your time to
learn and evaluate all you can about entering into a currency pair before you commit

money to a trade. Remember, a few good trades at the beginning can go a long way
Essential at giving you confidence to continue your Forex trading endeavors!

All your information is determined, and then you place the trade. The information you read
might lead you to think that a short time frame of over-night is your best bet. In that case you would
have a larger percentage of your account in the trade and exit out at a very close profit point with an
automated take-profit command programmed into your software. If you determine that it will take a
bit longer for the currency pair of EUR/NOK to move in your favor, then a trade with a smaller portion
of your overall account balance would be best, with a much larger take-profit point set in your
automated trading platform.

Either way, you have used both the fundamentals and the technical to decide on a trade, and
you've used the both of them to help you deter-mine an appropriate time frame to be in your
EUR/NOK trade for maximum return with minimum risk.