Zoomies Forex & Crypto
What is Forex?
The foreign exchange market, commonly known as Forex or FX, is a global marketplace for exchanging national currencies against one another. It is one of the largest and most liquid financial markets in the world, with daily trading volumes exceeding $6 trillion. Forex trading involves buying one currency while simultaneously selling another, and the goal is to profit from the changes in exchange rates between currencies.
What is Crypto Currency?
Cryptocurrency is a type of digital money that exists only on the internet. Unlike regular money, which is made of paper or metal, cryptocurrency is made up of computer code. It is safe to use because it is protected by very strong computer programs. Bitcoin is one kind of cryptocurrency. Imagine you have a special kind of money that only you and the person you are giving it to can see and use. digital currency. That's how Bitcoin works, but on the internet.
List of Cryptocurrencies:
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Bitcoin (BTC)
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Ethereum (ETH)
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Tether (USDT)
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Binance Coin (BNB)
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USD Coin (USDC)
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XRP
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Cardano (ADA)
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Dogecoin (DOGE)
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Solana (SOL)
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Polygon (MATIC)
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Litecoin (LTC)
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Polkadot (DOT)
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Avalanche (AVAX)
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Chainlink (LINK)
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Uniswap (UNI)
How the Forex Market Works:
Basics of Forex Trading:
Currency Pairs: In forex trading, currencies are always traded in pairs. This means you are simultaneously buying one currency while selling another. For example, if you trade the EUR/USD pair, you are buying euros and selling US dollars.
Exchange Rate: This is the price of one currency in terms of another. For example, if 1 euro costs 1.20 US dollars, the exchange rate is 1.20.
Example:
Imagine you are on vacation and you have $100. You go to a currency exchange and buy euros at an exchange rate of 1 USD = 0.85 EUR, so you get 85 euros. Later, if the exchange rate changes to 1 USD = 0.90 EUR, you can exchange your 85 euros back and get $94.44. If the rate changes to 1 USD = 0.80 EUR, you get $106.25.
Fun example:
A beer cost 6 USD in the United States. You travel to Panama, a beer cost 2 USD. For the cost of one beer in the United States, you can get 3 in Panama. Cheers!!
The foreign exchange market operates as a vast marketplace where individuals, businesses, and governments exchange various currencies from different parts of the world. To facilitate trading, the forex market is open 24 hours a day, 5 days a week, is divided into four primary trading sessions: Sydney, Tokyo, London, and New York This implies that you can in currency trading at any time, depending on your location and preference.
How Crypto Currency works:
Cryptocurrency is a type of digital money that exists only online. It uses special technology called blockchain to keep track of transactions and make sure everything is secure. Unlike regular money, like dollars or euros, cryptocurrency is not controlled by any government or bank. People can use it to buy things, send money to others, or invest, hoping its value will go up. The most well-known cryptocurrency is Bitcoin, but there are many others like Ethereum and Litecoin.
Trading cryptocurrency is like buying and selling digital money online. You can trade it on special websites. To start, you make an account on one of these exchanges and put in some regular money, like dollars. Then, you can buy a cryptocurrency, like Bitcoin. If you think the price will go up, you can hold onto it and sell it later for more money. If you think the price will go down, you can sell it quickly to avoid losing money. Just remember, trading crypto can be risky, and prices can change a lot!
Example:
If I want to buy $100 worth of Bitcoin at its current price of $66,519 per Bitcoin, I would get about 0.0015 Bitcoin (since $100 / $66,519 ≈ 0.0015). If the price of Bitcoin goes up to $70,000, my 0.0015 Bitcoin would now be worth about $105 (0.0015 x $70,000), so I gain $5. If the price goes down to $60,000, my 0.0015 Bitcoin would now be worth about $90 (0.0015 x $60,000), so I lose $10.
How to Analyze the Market:
To effectively analyze your trades, it's important to conduct research on the pairs you're interested in. This involves keeping an eye on the economic of the countries involved. For instance, in 2016, 1 USD was equivalent to 108 JPY, while in 2024, 1 USD is equivalent to 152 JPY. By conducting thorough research, you'll be able to strategically analyze the currency pairs and make informed trading decisions.
Buy low, Sell high.
Always use a stop loss!!!
Trading Strategies:
When you begin trading, you'll discover that creating your own strategies is important. My strategy focuses on the 4-hour charts. I always make my trading decisions based on what I see in these charts. Additionally, I like to check the daily, weekly, and monthly charts to where the price has been in the past. If I see the price of a currency is at its highest in a long time, I will closely watch the currency until it starts to go back down then execute my short trade(sell). If I see the price of a currency is at its lowest in a long time, I will watch it closely until the price starts to rise. I will then execute my long trade(buy).
An example on analytics: At the onset of the COVID-19 pandemic, the exchange rate for 1 USD reached nearly 26 Mexican pesos, reflecting the economic instability caused by the global crisis. Prior to the pandemic, in a more stable economic environment, the average exchange rate for 1 USD typically ranged between 18 and 20 pesos. This shift highlights the significant impact COVID-19 had on currency valuation and economic conditions worldwide.
Here, we have a chart illustrating the USD/MXN currency pair. Notice the sharp spike during the COVID-19 pandemic, which reflects the economic disruption at that time. As global economies began to stabilize, the exchange rates gradually returned to more typical levels, indicating a recovery in market conditions.
List of Currency Pairs for the USD:
1. AUD/USD - 1.36 AUD
2. CAD/USD - 1.26 CAD
3. CHF/USD - 0.92 CHF
4. EUR/USD - 0.85 EUR
5. GBP/USD - 0.73 GBP
6. HKD/USD - 7.77 HKD
7. JPY/USD - 109.98 JPY
8. MXN/USD - 20.08 MXN
9. NZD/USD - 1.44 NZD
10. SGD/USD - 1.35 SGD
Here is what 1 USD can get in exchange.
Please note that the foreign exchange market is constantly changing.
List of Currency Pairs for the EURO:
1. EUR/USD - 1.18 USD
2. EUR/JPY - 130.50 JPY
3. EUR/GBP - 0.85 GBP
4. EUR/CHF - 1.08 CHF
5./CAD - .47 CAD
6 EUR/AUD - 1.62
7. EUR/NZD -1.76 NZ
8. EUR/H - 9.16 HK
9. EUR/SG - 1.60 SGD
10. EUR/MXN - 24.00 MXN
Here is what 1 EURO can get in exchange.