Factors One Should Consider Trading Maxican Peso in Forex Trading

Forex trading involves the trade of many currencies. Currencies fall into different categories. Some are most actively traded while others have slight trade. Maxican Peso(MXN) is now ranked at eighth position in world liquid currencies. Obviously it is not that widely traded as the USD, EUR or JPY, yet it is highly liquid in the markets of Latin America. In the past few years, Maxican Peso has attracted the traders all over the world. It has become a vital financial instrument. It has evolved from a sleeping underdeveloped currency to one of the ten most traded currencies.

Best Time for Trade:

If you want to trade Maxican Peso, then the best time for trade is early morning with the opening of market. In the morning, the flow of economic activities and news is mostly smooth and steady. It is most suitable time for trading Peso.

Most favored Pair of Peso:

Peso is mostly favored because of its pairing with other currencies.USD/MXN is the most widely traded currency pair of Peso.Most of the trade of Peso is done through this pair. This pair gives both the short-term and long-term trading opportunities to Forex traders. It trades constantly from the evening of Sunday till the afternoon of Friday in U.S.A. The price and value of this currency pair can shift rapidly during a day.

Price Catalysts:

The value and price of a currency depends upon the economy of that country. Mexico holds the ninth position in the world’s largest oil producing countries. Obviously its economy is linked with its natural resources. It is also associated with COP (Colombian Peso) and BRL (Brazilian real). Thus the change in the price of natural gas and crude oil affect the Futures markets and the economy of Mexico. Similarly the weekly report of U.S.A related to oil inventory also affects the price movements of USD/MXN.

Economic Releases:

The early morning trade of Peso is most suitable time as the economic data is announced and released between 9 am to 10.30 am in Mexico. Obviously 30 minutes before this announcement and 3 hours after this release of economic data are very crucial time periods for profitable trade in Peso. The trading day in U.S.A also starts at the same time so you can witness shift in both currencies.

Equity Exchange Time:

It is also the same time when New York Stock Exchange and Chicago Futures market open. Thus it enhances the volume of trade in this currency pair.

ECB:

European Central Banks can also affect the trade of USD/MXN, particularly when the currency pair of EUR/USD faces a major change. Thus the best time for trade of Mexican Peso is early morning which is linked with its economy.

Forex Trading Advice for Part Time Forex Traders

The most appealing feature of Forex trading is that it is 24 hour open market. You can trade 24 hours a day and at the same time, you can also set your own trade schedule as well. Most of the traders nowadays are trading according to their set schedule such as day time or night time or whatever time they feel comfortable with. Such traders are called Part-Time traders. Obviously if you trade for only a specific time of the day, you are bound to miss some profitable trading opportunities. Thus time constraint is the major issue for Part-Time traders.

But there are many strategies that the part-time trader can use to earn handsome profit. For example if you trade at night, then you should use the strategy of Forex trading those currency pairs that remain mostly active at the time of night. Some major strategies that are helpful for Part-Time traders are:

Timing of Market Opening:

As a part-time trader, you should observe the timing of the market opening of major currencies, it will help you to select which currency pair you want to trade.

The Forex market in Europe and Japan are mostly active at night so you should any one of the following currency pairs.

EUR/JPY

EUR/CHF

AUD/JPY

You can also select currency pair that includes Hong Kong dollar (HKD) or Singapore dollar (SGD).

Stop-Loss orders:

It is the most widely used strategy by the part-time traders. It is a risk management technique that protects the money of the trader in case of a sudden change against of his position.

Price Action Trading Strategy:

There are some part-time traders that trade with frequent intervals during trade such as 10-20 minutes etc. In such a case, you can employ Price Action trading strategy. This strategy analyzes the movement and charts of your currency pair. It can inform you the up bars and down bars related to your currency pair. Up bar reflects an uptrend while the down bar reflects the down trends.

Holding for days:

A prudent technique and strategy employed by part-time traders is holding a position for long duration. You study and analyze the Forex market. Then you can select certain positions and just hold it for days.

New strategies:

There are many strategies that you can use in Forex Trading. You can select the strategy according to your risk aversion ability. You have to keep it in mind that what works for other is not necessarily going to work for you as well. What is Forex? It can be explained as exploring new strategies. It can help you to understand your strengths as well.

Effective Analysis Types in Forex Trading

Forex trading is all about making a right choice at the right time. But you cannot do it with just guessing. Traders use different types of Forex analysis for profitable trading. You can also employ one of these types of Forex Analysis to earn profit.

Types of Forex Analysis:

Basically there are three main types of Forex Analysis done by Forex traders. You can analyze the Forex trends by the charts or the economic situations of the related countries or even the past movements of your currency pair. These three types of Analysis are:

Fundamental Analysis:

Fundamental Forex analysis involves analyzing the economy of the country whose currency you want to trade. Thus the main economic factors such as the interest rate, employment ratio, productivity and income are analyzed to grasp the stability of the economy in order to predict the price movements of the currency of that country. Obviously it is a thorough analysis. you have to also keep an eye on any news related to that country as well.

Technical Analysis:

Technical Analysis of Forex Market involves analyzing the currency pair by technical tools such as charts. It also includes the analysis of the past value movements of the currency pair to judge the future movements. It is done both manually and by using automated systems. Obviously automated system is more preferred one as compared to manual one because it saves time.

Weekend Analysis:

Weekend Analysis allows you to analyze the Forex market in a calm environment as the market is close so you don’t need to keep an eye on price fluctuations. Thus you can organize your thoughts and develop a relaxed mindset that is essential for setting up effective trading plans for the week ahead. It is just like preplanning for trade. Weekend analysis can motivate you to set a motto and a plan to follow.

Application and usage of Analysis:

There are four main uses of Forex market analysis. It is like a procedure of four steps.

Analyzing the Drivers:

The key to success in Forex trading lies in understanding the current state of market and the reasons of its current state. If you understand the factors that cause changes in the market then you can determine the future price changes as well. Forex analysis helps to you to understand, analyze and evaluate the drivers that cause market movements.

Indexes:

Forex analysis also helps to chart the main indexes for a long duration. It will help you to understand if the movement of the market is inverse or not.

Consensus:

A consensus can help you to do a profitable trade in case of a turning point.

Timing the trade:

Timing the trade is also helpful for traders. If the first trade fails, another opportunity will appear for the support. Thus Forex analysis helps the traders in their trade in various ways. It can also help you in choosing the trading strategies as well.