The average person would probably expect a country to want to increase its currency’s strength, so it could perform better with trade and buy more. However, for a variety of reasons, governments around the world intentionally make adjustments to their currencies, affecting its value versus other currencies. Countries devalue their currencies only when they have no other way to correct past economic mistakes - whether their own or mistakes committed by their predecessors. Devaluation is a deliberate downward adjustment to the value of...
Currency exchange market is known as the market that is open 24 hours a day, but this doesn’t mean you have to be up all day and night. While the search for the ideal trading method or system takes up a large portion of a trader's research time, it may be worth noting that, while these are important elements of trading, there is one element which is arguably even more important - knowing when not to trade. Most traders that have become successful will tell you that their best decisions do not revolve around when to trade, but rather...
One of the few requirements for traders is to open an account, a live account. This may sound so obvious that reading the first sentence makes you laugh. After the first good laugh, what better way to start reading a post anyway, let us cycle back to this. Everyone who already trades fulfilled all the requirements, but think about all the new traders who have never been introduced to trading and are interested. One of the first questions asked is: How do I get started? Most new traders have no idea what they need to do in order to trade and...
Due to the forex market's complexity, it is hard to find an optimum indicator to foresee the potential development of market trends, if any such indicator exists at all. However, forex divergence may be one of the best indicators to reveal how the market may behave in the periods to come, thereby providing the investor with the opportunity to make the best justified trading decisions. Divergences may be a signal of a trend reversal or in some cases, a temporary change of direction in a longer-term trend. One of the most...
One great advantage of trading forex is the offer of bonuses on deposits by brokers. It can really give a very important boost to traders, regardless of the size of the deposit. A bonus is not only a token of appreciation for your business by your forex broker, but it increases the size of your portfolio and therefore the profit potential. What makes a bonus even more attractive is that once conditions are met, traders will even be able to withdraw the bonus. So it is not just a number added to your account after your deposit, but rather a...
