While the movement between currencies was once the preserve of traders who worked for large investment banks, today there are hundreds of forex brokers that make available online platforms which allow anyone with a bank account to speculate on the movements within the forex markets. However, buying and selling currencies via foreign exchange brokers can be quite expensive as there are normally quite sizeable spreads between buying and selling prices. The spread, or the difference between the bid and ask prices on platforms, has always...
Many forex traders use chart patterns and formations to accurately predict the future direction of price. These chart formations are considered reliable, not only because they have historically performed as anticipated when they have occurred, but also because of the number of traders who are watching for these patterns. The double top and double bottom forex chart patterns represent another profitable way to trade reversals in the forex market. Just like the head and shoulders pattern, these chart patterns form after an extended move in the...
The 2018 trading year is officially on its way and as with every start of a new trading year, there are many forecasts and themes which analysts and market watchers claim as vital for a profitable year. Today we will look at three forex themes which every trader should keep in mind, regardless of time horizon, in order to increase the pips earned over the next twelve months. Understanding and taking advantage of major trends will not only increase profits, but also decrease losses. Volatility is expected to increase as compared to 2017 which...
Experiencing losses is as much part of forex trading as winning trades. Unfortunately, a lot of traders take losses personally and they end up reacting to their losses by taking revenge trades. Many traders can’t handle losing, which ultimately drives many of them to revenge trading. Sometimes they can handle one or two consecutive losing trades, but when they lose too many times in a row, they become furious and try to win back all of these losses with one trade. Revenge trading is mainly driven by the fear of being wrong. It’s...
Moving back to predicting movements in the market, we acknowledge that a trader must have a thorough comprehension of the factors that can affect the movement of a currency's exchange rate if they want to be successful. Being capable of identifying trends is one of the core skills a forex trader should possess, as it can prove to be useful in making any forex market prediction. Experienced forex traders use market indicators to identify market trends and make trading decisions, among other functions. Simply explained, indicators are tools –...
