If you are looking for a core strategy to trade forex then this article will provide you with some of the best currencies to trade. In the past, the dollar has been the number one currency to trade. Most traders believe the price of gold is the best way to invest in gold and as well for the dollar. They believe that if you are a person that loves to trade in the dollar then it is a good idea to invest in gold.
Today the value of the dollar has been declining against the other major world currencies. This has caused economic downfall and people are losing money each day. Even with the declining value of the dollar the price of gold has continued to rise.
The other day I was in a chat room and someone was telling me that they lost a lot of money in the past due to the low interest rates and now that the economy is getting better the currency value has skyrocketed. Their strategy is to buy gold. Now this might be a good strategy for someone who wants to trade the dollar but I can't see why the value of gold has increased so much.
If you want to make more money in the forex market you need to understand the trends. Many traders don't understand the trends and will buy and sell on impulse. It is very hard to turn an impulse into a good decision.
There are strategic points in the forex market where you can buy or sell. Usually if the price of the currency is going up then you can expect it to continue climbing in price. If the currency goes down then there is a chance it can fall below the previous high.
I think it would be safe to say that the best time to purchase a currency is when it is below the previous high. I usually take a look at two charts and I will determine if the currency is going to go up or down.
Once I have decided on which currency I want to buy, I will go online and study it to find out the historical price range. Then I will compare this price range to the previous one. Based on these charts I am able to determine which currency I should buy.
One of the reasons why I prefer to use technical analysis rather than simply relying on emotion is because technical analysis is not subject to emotions. After you have made your decision on which currency to buy, you can sit back and analyze the charts and find out if the strategy is working.
I also recommend that when you are deciding which currency to buy that you don't take the first currency that you see. By this I mean don't be too quick to jump into the bandwagon. By taking your time and looking at multiple currencies before making your final decision you are taking the risk of missing the real momentum.
If you are not too sure about your strategy and do not want to get rid of your currency and buy another, then you may want to put a stop loss on your strategy. Once you have determined which currency to buy and you have put a stop loss on your strategy then you will be able to sit back and watch the market unfold.
The trend in price action can change very quickly so you need to keep a watchful eye and not jump into the bandwagon of the trend. If you want to learn more about trading currencies I recommend using one of the top forex robots.