Forex is a leveraged market, and with access to accounts that can be traded on leverage, the forex market has attracted real interest in the retail end of the market. There are many successful forex traders and forex success stories of traders that incorporate their own unique fundamental and technical approaches in the market. However, it is important to keep in mind that the amount of capital traders have at their disposal will greatly affect their ability to make a living from trading. Forex is one of the financial investments where the...
One of the challenges a new trader faces is not when to trade, but rather when not to trade. Trading the forex market is not about pushing to the limits, it is about placing yourself in the position which is as comfortable as possible and will help you to get to your goal. One thing that all traders will eventually need to consider is how much should be traded. Each style is different, and too many or too few trades could potentially harm a trader's profits. Overtrading is the most frequent mistake that most traders make maybe because...
The US Dollar has contracted against every other currency in the G-10 basket since the inauguration of President Trump last year in January. US Treasury Secretary Mnuchin arrived at the World Economic Forum in Davos yesterday in order to prepare the attendees for President Trump’s ‘America First’ policy on a global stage. Traditionally, the US administration has always endorsed and promoted a strong US Dollar policy, but this time around the messages has changed which could pave the way for what many believe to be the start of trade wars this...
News and economic data are the main drivers of market developments, but in a little different way than many traders think. Forex news releases trading is probably one of the most exciting forms of trading because it can produce instant profits and instant gratification. However, traders should know that potentially big profits always come hand in hand with bigger risks. Volatility spikes during these periods and prices may move in a disorderly fashion. If you don’t have a solid trading plan for a particular event, it is better not to engage in...
Because the forex market touches every country’s economy and is a highly inter-connected marketplace, it is extremely sensitive to geopolitical events that can cause an immediate effect on the prevailing currency rates. Under the umbrella of geopolitical events, there are many categories, ranging from local elections to budget negotiations and referendums to missile launches. Sometimes, these happenings fly below the forex market’s radar and other times, these events have a sizable effect. One of the first questions that...
