Develop Your Own Trading Strategy

In the World Markets segment of the Economic News Network, World Markets discusses currency pairs from various countries that are most commonly traded. Currencies are the goods and services most typically traded on the world market. Some of the most heavily traded currency pairs in the world markets include the U.S. dollar (USD), the European Euro (EUR), the Japanese yen (JPY), Swiss franc (CHF), and the Australian dollar (AUD). The countries with the highest trading volumes on the world markets are those that have high economic growth rates. While many consider these currencies to be safe investments, others emphasize the need for investors to take advantage of the volatility of these markets to benefit from the potential upside and downside risks of the trading positions.

For those just entering the world markets, this discussion will introduce you to some terms you may encounter as you study the world markets. Terms such as “off-balance” or “overbought” indicate a position is considered overbought by the market and could result in heavy losses if the investor decides to sell his or her position. Conversely, “on-balance” indicates a position is oversold and would indicate a possible buy when the investor decides to sell. Understanding these terms first can help you develop a trading strategy that is right for you.

Developing your own trading strategy involves knowing which currencies to purchase and which to sell. The currency markets are very fluid and react quickly to changes in economic reports around the world. Developing your own trading system takes time, discipline, and learning, but the results can be highly lucrative. Start with this discussion of the world markets, and develop your own strategies for investing in and trading the currency markets. You may be surprised at how easy it can be to make money.