The forex market is one of the most popular markets for speculation, due to its enormous size, liquidity, and the tendency for currencies to move in strong trends. Currency trading is a golden opportunity for those who want to earn money and become rich. Granted, not everyone gets rich immediately, but the opportunity for profit is it that attracts hundreds of thousands to try their luck in the forex market. Millions of people ask themselves exactly the same question. The main reason why traders tend to conquer the famous forex market is...
Many forex traders tend to overlook the Scandinavian forex market. Some of the reasons for this oversight include the size of the market as compared to major currencies, the liquidity for currency pairs which are traded in the Norwegian Krone, the Danish Krone and the Swedish Krona or the higher spreads which usually come with minor currency pairs. It is a big mistake to single out the Scandinavian economies as there is a lot of profit potential embedded into the currencies which makes it a perfect addition to any forex portfolio which is...
When it comes to order flow, many newer traders tend to think of volume bars or time and sales information. It is much more than that, and it really helps to understand the premise behind how markets facilitate order flow. Whether you are trading stocks, futures, forex or bitcoins, financial systems such as these are affected by one thing: People’s beliefs about the future. At any one moment, a countless number of participants are taking action (initiating trades or placing orders) for a limitless number of reasons. Order...
Deep understanding of the underlying principles and mechanics is essential to professional forex trading. Stop-loss and take-profit (SL/TP) management is arguably the most important concept of forex. Stop-loss is an order that you, as a trader, send to your forex broker to limit your losses in a particular open position. Take-profit works in much the same way, letting you lock in profit when a certain price level is reached. When placing stops, we want to place our stop loss at a logical level, that means a level that will both tell us when...
The psychology of forex trading has much to do with a trader’s instinctual reaction to the market. In a changeable trading environment, uncontrollable emotions are possible, especially during market movement. Oftentimes, the emotions that go unchecked can lead to unpredictable results. Whether your strategy dictates you to hold on or close a trade, emotions can trigger different reactions that might affect output. With plenty of information coming in, forex traders must master how to manage emotions, especially when challenged....
