What did you learn from these few months?

What happened to our market recently? If you were a trader or investor, you might found that, the market has been moving rapidly and most of the stocks appeared "red" everyday.

As a currency trader, we found out that, during Japanese Crisis and Libya war, USD did not act as safe haven currency. However, Swiss Franc becomes the biggest winner. But WHY?

According from the book Currency Trading For Dummies, "we prefer to view Swiss Franc as the panic button of forex markets. When unexpected geopolitical news hits the proverbial fan, USD/CHF usually reacts the fastest and the farthest." The reason behind this is because Swiss Franc has a direct link with Gold. There is no price change between Swiss Franc and Gold price. Which means that, Swiss Franc is Gold; and Gold is Swiss Franc. You can go to Switzerland to change the real Gold with the fix price of Swiss Franc. Therefore, when everyone see of the crisis and war, people tend to change their currency into Gold and which makes Swiss Franc appreciate.

Commodities currency such as Australia Dollar has depreciated to as low as 0.97025. From my own perspective view, this Australia dollar with the high yield bond will recover pretty soon back to its average price, or it might goes beyond the history high as commodities price will keep rising and people especially in Japan need food and rebuild, which will appreciate commodities currency.

Pound
Pound continues to appreciate as based on the technical analysis prospective. Pound has been continuing appreciated since Jan 2011, therefore, I would be looking forward that Pound will touch Nov 2009 high point, 1.67400.

As a result, try to understand the direction of market and with a basic knowledge of country currency, we will get a great result from trading currency. Knowledge is what we need before we do anything. You can say this is difficult to earn money from currency trading, but when you understand and take the higher probability chance to get into the game, you might probably earn money instead of losing.

This is just a probability game, 50/50 chance you will win and lose; however, with a support of technical tools as well as fundamental analysis, such as read the daily news, think about what would happen and what the majority people will do, follow the main trend, stick with your strategic. 60% or even 70% or 80% you will get in this game, then you will become the winner.

Look at the bigger time frame such as Monthly and Weekly, then looking at Daily and smaller time frame. Compare with these time frame, and find the main trend, then you will find a direction.

To reach professional level, training is the only way.

Good Luck
Charles BY