Due to having a good understanding in the psychology of market Bill Williams developed his own method of trading which is based on meanwhile using a rational approach to the analysis of the market and the irrational logic of chaos. Chaos Theory is mathematical concept that explains that it is possible to get random results from normal equations. The main precept behind this theory is the underlying notion of small occurrences significantly affecting the outcomes of seemingly unrelated events. Is the market random or predictable?...
Forex's popularity entices traders of all levels, from greenhorns just learning about the financial markets to well-seasoned professionals. Because it is so easy to trade forex with round the clock sessions, access to significant leverage and relatively low costs it is also very easy to lose money trading forex. Sooner or later every forex trader gets struck with an unexpectedly big loss or a line of such losses. Usually, it is just the matter of time and trader’s reaction to the...
The matter of central banks and/or governments, purposely manipulating currency markets has been a hot topic over the last year. The practice of suppressing currency rates to maintain a competitive advantage has commonly been referred to as a “race to the bottom”, where global economies have been engaged in huge monetary easing since in order to maintain their competitiveness and attempt to boost growth. Another phrase often used to describe this practice is “currency wars”. After a long period that last for decades, we are now in a time,...
Forex's popularity entices traders of all levels, from greenhorns just learning about the financial markets to well seasoned professionals. Because it is so easy to trade forex with round the clock sessions, access to significant leverage and relatively low costs it is also very easy to lose money trading forex. Just because forex is easy to get into doesn't mean that due diligence can be avoided. Learning about forex is integral to a trader's success in the forex markets. While the majority of learning comes from live...
The forex market constantly is offering lower and higher quality trade setups. It is traders job to scan, recognize, select, enter and exit the ones with the best odds and reward to risk. Given the uncertain nature of the forex market, traders always face a dual choice -- high probability or high profit. The shorter you set your amplitude goals the higher the probability that you will achieve your target. On the other hand if your amplitude is long than you stand chance of making high profits albeit at a much lower probability rate. ...
