The forex market is constantly changing, so traders need to be able to understand the ups and downs of this market. There is no patterned formula or set of rules to guarantee success in forex. Learning how to trade forex successfully is certainly not a random endeavor, it is a structured approach based on planning, executing, reviewing, and adjusting the plan as necessary. The continuous application of this cycle allows us to have a beneficial trading mindset and behavior which leads to consistent profits, the ultimate goal of...
Since there is constant fluctuation between the currency values of the various countries due to varying supply and demand factors, such as: interest rates, trade flows, tourism, economic strength, geopolitical risk and so on, an opportunity exists to bet against these changing values by buying or selling one currency against another in the hopes that the currency you buy will gain in strength, or the currency that you sell, will weaken against its counterpart. Until the advent of the internet, currency trading...
During moments of limited market volatility, an ideal opportunity presents itself to profit from the zigzag motions in the market. A range bound market is characterized by levels of higher buying pressure, known as a support, and higher selling pressure, known as a resistance. These levels create a channel, where market movement is generally concentrated within these key levels. As major support and resistance levels are defined, range traders apply the unique concept of buying at support and selling at resistance. True range traders don...
The primitive forces of capitalism rule markets like the laws of gravity. Buyers and sellers provoke a battle to find a happy medium agreement in every market on the face of the planet. As prices dance around on charts, traders are often looking to a number of reasons to explain price movements. And often-times, a number of reasons can be associated with these types of changes. But at its core – every single price movement is denominated by supply and demand. Positive news means increased demand and lessened supply – equating to...
Forex trading is a mind game and requires effective management of a traders’ emotions. Because trading is a flood of opportunity for both buyers and sellers, emotions often run rampant. However, making the best decision from a trading point of view is often the hardest emotional decision to make. The emotional intelligence is our ability to recognize and assess our own emotions and manage these emotions in order to achieve our purposes. Emotional intelligence is made up of four main skills: self-awareness, self-management, social...
