Wednesday, December 31, 2008

Making time for market analysis

The full version of Currency Trading For Dummies talks about the amount of data and news that flows through the forex market on a daily basis

and it can be truly overwhelming. So how can an individual trader possibly keep up with all the data and news? The key is to develop an efficient daily routine of market analysis. Thanks to the Internet and online currency brokerages, independent traders can access a variety of information. Your daily regimen of market analysis should focus on:

_ Overnight forex market developments: Who said what, which data came out, and how the currency pairs reacted.
_ Daily updates of other major market movements over the prior 24 hours and the stories behind them: If oil prices or U.S. Treasury yields rose or fell substantially, find out why.
_ Data releases and market events (for example, the retail sales report, Fed speeches, central bank rate announcements) expected for that day: Ideally, you’ll monitor data and event calendars one week in advance, so you can be anticipating the outcomes along with the rest of the market.
_ Multiple-time-frame technical analysis of major currency pairs: There is nothing like the visual image of price action to fill in the blanks of how data and news affected individual currency pairs.
_ Current events and geopolitical themes: Stay abreast on issues of major elections, political scandals, military conflicts, and policy initiatives in the major currency nations

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