If there is one feeling that currency traders universally abhor, it would probably be the emotion derived from watching a losing trade turn deeper and deeper against them. Unfortunately, losses are an inevitable part of forex trading and you cannot improve your trades or become a consistently profitable trader if you can’t accept that. There is no point in obsessing over a high winning percentage; instead you need to focus on cultivating your trading skills and seeing the bigger picture. To become a successful trader you need to make a few...
There has never been a more challenging and exciting time to be trading in the foreign exchange market. What started out as a market for professionals is now attracting traders from all over the world and of all experience levels. The forex market mainly exists because of the need to ease or facilitate currency exchange. There is a need to exchange currencies because one country’s currency is not accepted in another. Currencies are needed everywhere to facilitate trade of goods and services. The forex market works just like the other...
Spread Betting is a trading method in which a trader is placing a bet on the price movement of a specific financial instrument. While some people think that spread betting and forex trading are very similar, in fact there are a number of important differences between the two that need to be understood. Perhaps the most important difference between the two types of transactions is that spread betting is recognized as a form of gambling under the law of the United Kingdom while forex trading is officially recognized as a form of...
The fact is that currencies are moved by many factors - supply and demand, politics, interest rates, economic growth, and so on. More specifically, since economic growth and exports are directly related to a country's domestic industry, it is natural for some currencies to be heavily correlated with commodity prices. The top three currencies that have the tightest correlations with commodities are the Australian dollar, the Canadian dollar and the New Zealand dollar. The currency prices are affected by many outside...
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 trading. It is essential to learn how to handle them to prevent they constitute an obstacle to your success. The truth about forex is that it can be an intense and stressful undertaking that requires a strong control of your emotions. The key to making money in forex trading is to avoid emotional decisions and to follow a carefully thought out strategy that takes the...
