Markets move in waves known as swings in the price of the instrument. No market, for example, will trend up without having some sort of retrace in price. The best swing trading techniques will attempt to ride either the swing up in price or the swing down in price. Swing trading is a speculative activity in financial markets where a tradable asset is held for between one and several days in an effort to profit from price changes or 'swings'. A swing trading position is typically held longer than a day trading position, but...
In the equities market, fundamental analysis looks to measure a company's true value and to base investments upon this type of calculation. To some extent, the same is done in the retail forex market, where forex fundamental traders evaluate currencies, and their countries, like companies and use economic announcements to gain an idea of the currency's true value. All of the news reports, economic data and political events that come out about a country are similar to news that comes out about a stock in that it is used by...
The majority of people that get interested in forex trading do so because they are unhappy with their job or with the current amount of money they are making, or both. Also many forex investors do not have the time to trade full-time. Instead, they focus their efforts on part-time trading in the evenings or during breaks in their workdays. That’s the beauty of the 24-hour forex trading cycle – traders can earn profits in as little as one or two hours each day. Trading, even on a part-time basis, still requires a lot of time, effort...
A variety of factors can affect a trader’s performance, keeping composure when under pressure is essential for success. The importance of having being a patient trader cannot be emphasized enough, in fact, one could even say that there is a positive correlation between the equity curve of your trading account and the amount of patience you possess as a trader. In other words, focusing on developing and maintaining patience while trading the market will cause your equity curve to rise much more consistently than not paying any attention...
Whether we admit it or not, many of us are lured into the world of forex trading because of the potential to score big bucks, along with plenty of opportunities to exercise one’s brain and will. As all experienced forex traders will tell you, maintaining discipline when trading is one of the keys to success. However, one of the biggest problems with this is that some people become addicted to trading. Just like being an alcoholic or a gambler who is out of control, trading can become something that some traders just cannot do...
