What kind of trading strategy should I use?

Currency traders make decisions using both technical factors and economic fundamentals. Technical traders use charts, trend lines, support and resistance levels, and numerous patterns and mathematical analyses to identify trading opportunities, whereas fundamentalists predict price movements by interpreting a wide variety of economic information, including news, government-issued indicators and reports, and even rumor. The most dramatic price movements however, occur when unexpected events happen. The event can range from a Central Bank raising domestic interest rates to the outcome of a political election or even an act of war. Nonetheless, more often it is the expectation of an event that drives the market rather than the event itself.

When is the FX market open for trading?

A true 24-hour market, Forex trading begins each day in Sydney, and moves around the globe as the business day begins in each financial center, first to Tokyo, then London, and New York. Unlike any other financial market, investors can respond to currency fluctuations caused by economic, social and political events at the time they occur - day or night.

 

Is your broker established and regulated?

It is extremely important to know whether the broker you want to choose, is established and regulated or not. Choosing an established broker can confirm you about his reputation and the amount of expertise he has about the market.

A regulated broker will ensure credibility in your trade. This is because of the fact that every regulated broker has to present his fiscal reports to the regulatory bodies, such as local regulatory bodies like NFA (National Futures Association) or FDF (Swiss Federal Department of Finance) for US traders and brokers.

These reports, if failed to be presented, can give these bodies the right to penalize them to the extent of even expiring their market membership as a broker.

Such stringent rules and orders compel all these Forex brokers to maintain see-through fiscal reports. Also, such regulations on brokers facilitate the traders and depositors to trade safely, hence increasing their overall investor security.