What Investors Need to Know About Forex
These currency pairs are important to watch and consider when investing, says Casey Stubbs, who also explains his use of candlestick charts, and gives some getting-started tips for equity investors interested in forex trading.
Kate Stalter: Today I’m talking about forex with Casey Stubbs of Winners Edge Trading.
Casey, a forex trader wrote on the MoneyShow.com Web site that three of the big factors that can move currency markets are micro, macro—that is, economics data—and monetary policy. It seems that we’ve all of that in spades in the last few months. How would you advise monitoring the currency markets, given all the variables these days?
Casey Stubbs: Well you’re absolutely right, and those factors are very much in play in the currency trading market, and that’s what requires currency traders to be very flexible…and they must be monitoring their positions constantly.
And one of the ways I recommend doing that is: Stay abreast of all of the news channels and stay tuned to the business section of the papers. Just keep a look out for articles that talk about the dollar, articles that talk about the Federal Reserve, and just try to gauge what is going on in those particular markets.
Kate Stalter: Let’s talk about some of the specifics that have been in the news. One thing that has been on the minds of people who trade and invest—across all asset classes, really—is the euro. Should forex traders be concerned about the fate of the euro right now, or really just watch what the charts are telling them?
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Casey Stubbs: Well, I personally am a technical trader, which means I look at charts.