Forex Secrets

In the world of Forex secrets come in several varieties. There are true secrets held in confidence by major players such as central banks and large institutional traders. There are tricks of the trade that accomplished Forex traders learn over the years and use to gain profits in Forex trading. These Forex secrets of long time traders are only secrets in the sense that other traders have not learned them yet. However, the plans of the large and powerful payers in the market can be a different matter. Whether Central Banks and the like act through Forex secrets or clear and obvious threats to manipulate the market depends upon just what these players intend to accomplish. A useful piece of wisdom about Forex secrets is that we can guess what they are based upon the actions of the players who hold those Forex secrets.

There are long term, never spoken, Forex secrets that are obvious to any that observe Forex over time. The continual use of the Foreign exchange markets to lower the value a nation’s currency is one of these. Japan, Taiwan, and most recently mainland China have practiced this Forex secret for years. These are trading economies that require a reasonably low value to their currency in order to sell the products at a competitive price across the world. What these countries have habitually done is buy US treasury notes with their profits, for years and years. By doing so Japan and the rest continually put downward pressure on the Yen, Taiwanese dollar, and Yuan. This is a monetary policy of each of these countries. It is seldom or ever admitted to by the nations that practice it but is a cornerstone of their economic success and something that they will likely never quit doing. Certainly in times of crisis someone will say that one of these nations could wreck havoc on the USA and world economy by dumping their US dollar based assets and selling their dollars. It would be self defeating because then their currencies would inflate in value and their economies become less competitive.

For the rest of us folks Forex secrets are the tricks of the trade that we learn by trading and analyzing our results. These Forex secrets are as simple as always keeping financial reserve in order not to lose everything in on bad trading session. It may be to use a message service that alerts you to profitable trading opportunities. You own Forex secrets may be that you have a unique insight into a particular economy, nation, or culture and find that you are always a step ahead of the rest in trading the Ruble, Real, or Rupee. Whatever your Forex secret is, use it to profit in trading foreign currency. Whatever the big guys are up to, the individual trader profits from knowing the ever changing fundamentals of the currencies that he trades and doing technical analysis of the day by day fluctuations of currency prices. In the end the best Forex secrets are those that you discover yourself in trading foreign currencies.