Trading psychology is an important discipline that needs to be studied and understood by anyone who aims toward long-term success in the financial markets. Self-mastery and emotional control are key to achieving consistency when trading. There are many characteristics and skills required in order to be successful in forex trading. The ability to understand the inner workings of the forex market, its fundamentals and the ability to determine the direction of the trend are a few of the key traits needed, but not one...
For traders decision making is all important. Setting up an investment goal and choosing a particular financial instrument to trade on can only bring the expected return on investment if you know what moves the market and when it is the optimal time to enter or exit your trades. Traders in the foreign exchange market pay close attention to global events by using an economic calendar. By having the release schedule for each economic indicator, a trader can anticipate when major movements will happen. The economic calendar provides useful...
If you have ever come across the term ‘naked forex trading’ in the past, you may have been (understandably) intrigued. Needless to say it is not a literal term, but is used to describe a certain style and technique of forex trading. Most forex traders rely on technical analysis books written for stock, futures, and option traders. However, long before computers and calculators, traders were trading naked. Naked trading is the simplest (and oldest) trading method. It's simply trading without technical indicators. Traders who use standard...
With interest rates dictating the rate of return for holding assets denominated in the local currency, forex traders also pay special attention to interest rate differences when it comes to keeping their positions open for a long time. This is because the interest rate difference is carried on when a forex position is kept open overnight. This practice is known as carry trade.The carry trade is often referred to in forex circles and it is a technique smart traders use to profit, not just from movement in a currency but from the interest rate...
Ranking as one of the most important tools that any forex trader can have within his or her trading arsenal, forex trading signals can help you stay one step ahead of the market. Forex signals are indicators or information that allows successful trading by reducing risks associated with forex trading. Basically it is an alert system that keeps the traders updated about fluctuations in forex market. It provides information about the correct timings when currencies should be sold or purchased in order to make maximum profit. Signals are...
