Forex, the foreign currency exchange market, is available for online trading 24/5. The pace is fast and there appears to be little governing the boundaries of behavior, so does this make forex more similar to casinos than like other investment opportunities? Yes and no. Trading forex is what you make it. It can be a risk filled hobby as dangerous and luck driven as a casino game, or it can be a complex and highly orchestrated investment business with a minimum risk element and a high potential for profit. Everyone knows that financial trading...
One of the keys to success when trading forex is to know why the market is moving in a certain way, and to be able to anticipate these moves. On the whole, the biggest market-moving events tend to be the release of key economic data such as the US nonfarm payroll number. While the reaction of the market to these announcements can be unpredictable at the best of times, they do present excellent trading opportunities. The simple yet efficient way to managing information from announcements is to keep an economic calendar. The currency...
Forex trading involves high risks. The probability of a complete loss of capital is an important issue not only for beginners but also for experienced traders. To reduce the risks, each market participant should develop a set of rules, and always, under all circumstances, follow them. This is especially important for beginners, who is badly oriented in terms of trading and are not always able to cope with their own emotions. Such a complex of protective rules calls money management. In the beginning, not having his own experience and market...
Life trading in the forex market has many parallels to owning an operating a business. Just as in business, traders should expect streaks of profits and losses. The key to long term success however, ultimately will fall in the analysis of these cycles. This way a trader can maximize their successes while working to reducing their periods of balance draw downs. One of the easiest ways to track your trading is to keep a forex trading journal. Just as a business owner tracks inventory, a trader should also keep up with their closed...
The psychological aspect of trading is extremely important. When it comes to trading, the general consensus is that we should be able to control our emotions in order to succeed. We shouldn’t be greedy, fearful, impatient or easily disappointed because we may not trade objectively. Therefore, the only thing that seems reasonable is to try hard in order to eliminate emotions. Emotions are part of human nature. They may manifest as positive or negative feelings. Since a trader is first of all a human being, emotions can interfere during the...
