The key to profiting in any market is to have a simple strategy that has you buying low and selling high. If you are trading with a good risk to reward ratio then you can be right on less than half your trades and still make very healthy returns. You have to know how to spot a nice opportunity, and be ready to execute your trade plan according. Some of these high probability trading opportunities are provided when trading breakouts in forex market. Breakouts occur when price has been range-bound for a period of time as bulls and bears...
The tools used to predict the Forex market fluctuations, include a variety of economic models, technical indicators, decisions taken by the central banks, fluctuations in oil prices, and others. But trader should also take into account the impact of global cataclysms, ranging from natural disasters to wars and economic crises. Disasters, in fact, could have a significant impact on exchange rates and it often turns out to be much stronger than, say, the central bank's decision to raise base rates. Major disasters lead to factors, which, in...
You probably noticed that ordinary Forex market traders are constantly trying to find a new indicator or trading plan that will allow them to get more money. The reason for such a frantic search is that most traders lose money instead of earning it. Moreover, the problem with searching is that it never ceases. A novice trader does not understand that it is enough to find a reliable trading system and stick to it. No single set of indicators has brought big profits to its owner. Only those who know how to interpret a set of indicators can...
Trends in the currency markets are one of the most important and basic elements to trading. Incorrect recognition or interpretation of trends can have a devastating effect on traders. At some point in your investing career, you are most likely going to hear the cliche “the trend is your friend”. While this statement is true and seems simple enough, actually identifying a trend can be deceptively tricky–especially if you are new to technical analysis. And of course, the trend is only your friend if you can properly identify it. The trend...
Strategy, discipline, and attitude with which you approach the realization of trading deals on the Forex, determines your final profit or loss in the long term. You can not control the ups and downs of price movements in the currency market. In this regard, many people believe that success or failure in forex trading is only a matter of luck or whim of fate. Five per cent of the successful traders understand that the remaining 95% not aware: that chance is just one element of the market. Your psychology defines how do you deal with a myriad...
