Whether you are new to trading in Futures and Derivatives – and if you are you should read on – or you are simply looking for new, exciting and fresh markets to explore, you’re in the right place! I’ve been trading lately in MXN, the Mexican Peso, and it makes for a very interesting and potentially lucrative currency pair, and I’ll tell you the reason for that in a moment. First, a quick reminder of what it’s all about, and why this form of trading is one you should consider.
We’re talking today about trading in currencies, so you need to be aware of this. If you’re experienced you will have the knowledge you need, and if not, there is information that is useful and plentiful to be found on the web. There was once a time when currency trading, and Futures and Derivatives, were consider a ‘dark art’, something only experts could handle: this is nonsense. Currency values change all the time, day to day, and by investing in the future of such, you can make a good deal of money in return. The trick is to have the right information, which is where we come in.
The thing about currency trading – and especially when we are talking about exotic currencies – is that nobody can know 100% what is going to happen. Those who keep a close eye on the market, and there are some in every country, and who understand the underlying trends of the moment, can help others make the right investment – and, crucially, to buy and sell at the right time.
We mention MXN; what’s interesting is that the Mexican economy is in a state of flux right now, and the currency is naturally volatile which makes it very interesting for trading.
So, quality information is everything when trading a currency like MXN, before plunging into a position my objective was to find a good TA that could provide a good in depth analysis of the currency and as a result I found a great source of information in the form of a Twitter feed from a Banker in Mexico “Dr Teodoro Lavin Sodi” which is quite remarkable in its depth.
Analysis provided and trends of MXN are surprisingly accurate as he provides quite amazingly precise info and advice on key S&R levels – all free of charge – I would highly recommend this feed to anyone trading Mexican Peso, you can find his twitter here (@teodorolavin). Other than that the Banco de Mexico or Banxico is a great resource as also the Secretaria de Hacienda y Credito Publico, all three resources are a must before thinking of opening any position in the Mexican Currency.
There is a lot to be said about investigating exotic currencies, as doing so gives you a wider breadth of investment and trading possibilities than if you are to stay with the commonly traded currencies. The benefit of trading in exotics is that you are entering an unsaturated market – one that may still be emerging and developing – hence you are not battling against untold competition. As with every investment possibility there are risks involved, but when you have access to information such as that we have mentioned above, the risks become less, and the possibility of making real money – while not assured – is a much more viable outcome. Check out MXN now before everyone else gets in on that act!