As traders, we are always focused on finding profitable trading opportunities. After all, the point of trading is to make money. While profitability is clearly the ultimate goal of all trading activities, it is also important to focus on risk management. Trading the markets is risky no matter how you approach it. While you cannot completely eliminate this risk, you can limit your exposure to it. Before you enter any trade, you should have a plan that dictates exactly how much you are willing to lose. A very common factor...
Often in forex trading we hear the term trade strength against weakness, however sadly not many follow it. Determining a strong and weak currency before entering any pair is the most important criteria, in fact I would say it’s the core of the analysis. Calculating strength of single currency and making use of a currency strength meter supplies the trader insight the regular trader enjoying a shot after dark just doesn't need. The quantity of motion of a moving body, the body being a currency, is measured in the degree at which a...
As their names suggest, support and resistance act as barriers within forex markets and are easily spotted on price charts either preventing price from moving higher or lower. This can be seen on any forex chart and across all time frames with those most influential areas of support and resistance potentially still existing in the market years after they were originally created. Both support and resistance in forex trading are known as areas which have historically caused large number of traders to enter the market. Support is the price zone...
The carry trade is one of the most popular trading strategies in the currency market. Mechanically, putting on a carry trade involves nothing more than buying a high yielding currency and funding it with a low yielding currency. The most popular carry trades involve buying currency pairs like the Australian dollar/Japanese yen and New Zealand dollar/Japanese yen because the interest rate spreads of these currencies pairs are very high. The carry trade is a strategy in which traders borrow a...
Being your own boss with the comforts of making money using your laptop/mobile when its convenient for you is enough motivation for both young graduates and experienced professionals to consider forex trading as a career. Forex exchange markets provide traders with a lot of flexibility, because there is no restriction on the amount of money that can be used for trading. Also, there is almost no regulation of the markets. This combined with the fact that the market operates on a 24/5 basis creates a very flexible scenario for traders. Forex...
