A common misconception among forex traders is that the market is closed over the weekend. In fact, the forex market never closes, not even on weekends or holidays. When retail trading closes for the weekend, your broker simply denies you the ability to trade. Gaps mainly occur when the particular instrument and/or market, in general, makes an announcement that is unexpected, or a related event somewhere in the world takes place. In fact, gaps can follow any sudden change in investors’ perceptions about a stock, fund, future or currency...
While MiFID III will come into effect next month and many companies struggle with what this will mean for their business, many have already put the Basel III framework out of their mind. Basel III affect banks and capital requirements they need to have on their balance sheets in order to be able to withstand future financial crisis. Central banks around the world have approved the new rules which are intended to make banks more safe and secure. Basel III took several years of work and as with most other multi-year projects, there is always...
Many forex brokers, especially of the online variety, have facilities available for trading on these major holidays. But the reality is that the volume becomes very thin. Because the forex is 24-hour, worldwide market, you would think that this would be the greatest of times to trade, especially since money is flowing everywhere in commerce. Traders who want to take a chance and trade on such days have to realize that the liquidity is low, the analysis is difficult, and the risks are high. There are countries that choose not to trade on...
Merry Christmas to everyone who observes and celebrates it! This period is a great time to reflect on a great year which is coming to an end, and smart forex traders are taking a closer look at their forex portfolios in order to conduct an annual overview of their performance, crunch numbers and determine where they need to improve to make the next year an even better one. Many global markets are closed for Christmas today which means very thin volumes will be encountered. Volatility is expected to be low, but that does not mean that there are...
Successful trading is difficult and building the correct attitudes and beliefs is the way to develop the habits and skills necessary for profitable trading. Without a profitable and successful trading mindset, you will be swimming upstream against your emotions/fears, thoughts, and unconscious habits which undermine your success. As with any form of speculative activity, the importance of psychology in forex trading simply cannot be overestimated. Humans are emotional beings, and they have well-defined psychological traits that often...
