With buyers and sellers from all corners of the globe participating in trillions of dollars of trades each day, currency market is a true global marketplace. The fact that foreign exchange trading has become such a globalized activity means that macroeconomic events play an even greater role in forex than ever before. The currency market is primarily driven by overarching macroeconomic factors that influence the decisions of the traders who ultimately decide the value of a currency at any given point in time. Economic data tends...
One thing that many successful traders seem to have in common is a strong sense of self confidence that cannot be readily shaken even if they make a few losing trades. Furthermore, having a high degree of confidence in their abilities to adapt to new situations allows them to be more flexible as traders, which can be a very useful trait when dealing in the often changing forex market. Traders with a higher degree of self confidence also tend to be more adventurous since they are willing to make mistakes so that they can learn from them and...
One of the many advantages of the forex market is that it is open for trading 24 hours a day. Unlike the stock market, the currency market works according to the normal business hours of the three business centers spread across different time zones. Many first-time forex traders hit the market running. They watch various economic calendars and trade voraciously on every release of data, viewing the 24-hours-a-day, five-days-a-week foreign exchange market as a convenient way to trade all day long. Not only can...
Traders, especially those starting out are often looking for forex strategies that will extend the scope of the things they can do from their trading platform. As we all know, forex is the most liquid and the most volatile market, hence while many traders are bearing through minor price fluctuations to get a gain of some 100-200 pips per their trade, there is a whole army of forex scalpers trying to squeeze every possible opportunity out of these small fluctuations in the foreign exchange quotes. There is a great deal of confusion when...
The Alligator indicator is a great forex trading tool that has been fascinating traders for a long time. Having a funny name, the indicator shows the power of bulls or bears to reverse a trend. It adapts most to a trending strategy, but it is famous for calling reversals too. For this reason, the indicator is popular among forex traders, trend followers or contrarians. This is one of Bill Williams famous indicators. Together with Fractal, Gator or the Awesome oscillator, the Alligator forex strategy is unique in every way. The...
