Page 80 - Ultimate Guide to Currency Trading

how to do both. When you get good at it, you will be building models that can predict the direction of
currency pairs with precision. Take your time learning how to use regression analysis and don't be
discouraged programming Excel.

In order to learn how to fully employ statistics and regression analysis into your trading, you
should read books on data analysis for Excel. These books are available at your bookstore and are
available for any version of Excel you may have. When you get a copy of a book on data analysis, look
up and read the sections on regression analysis. These books usually offer examples of how to
program Excel in easy to follow formats. Most of them have a great number of pictures, and some of
them have CDs to download most of the work directly to your computer.

Once you get the basics down, you can build a model and analyze it in an hour or two. Once
you get to this level of proficiency, the next step is to discover what ETFs and other data points you
can use to build models that are strongly and accurately predictive of the direction of FX pairs.