Trading in the forex market is surrounded by a certain amount of mystique, because there is no single formula for trading successfully. Why do some forex traders succeed and others fail, what sets the winners apart from the losers? Successful traders have acquired certain skills and habits that they have finely adapted and tuned to their interactions with the unique environment of the market. For what really seems to divide the winners from the losers is the ability to take responsibility for every action and to possess the...
One of the great ironies of life is that as traders we often trust ourselves least of all. Most Forex traders approach the whole enterprise with deadly combination of overweening sense of arrogance in our ability and underwhelming sense of confidence in our trade setups. When it comes trading no one can second guess or sabotage us better than ourselves. All it takes is one or two stop outs in a row and suddenly the setup that we worked on for months, goes out the window. Impulsive trading takes over as we "try to get it back from the...
Knowing how many trades you should have open at the same time should be part of any forex trading strategy. No matter which stage of trading you are at (beginner, professional etc.), you should always know how many open positions you can have at same time. When you are just starting out you may find it very helpful to only have between one and three positions open at one time. This is the case for all beginners when they first start to trade; they are learning to identify and interpret all market indicators which go into making successful...
For all of us who are trading forex it is important to understand what leverage is and how it can perform for us during the trading process. One of the biggest reasons why the forex market is exciting and accessible to small retail traders is because of the industry’s high leverage options. Leverage gives a trader the ability to increase the potential return on an investment but also it increases the potential risk. Leverage is the ability to convert a small amount of power into a larger amount through the use of a tool. You can make...
Investors and traders can trade currencies worldwide, in any trading zone, 24 hours a day, in today's foreign exchange market. London, Japan and New York top the top three currency traders among the currency dealers. These currencies are being traded 24 hours a day. The only time that currencies stop trading is on Friday when the Japanese market shuts its doors. There is a one day window after Japan closes before Europe steps in on Monday morning to open for business. The majority of trading comes from banks, brokerages and investment...
