In the forex market rollover is the process of extending the settlement date of an open position. In most currency trades, a trader is required to take delivery of the currency two days after the transaction date. However, by rolling over the position - simultaneously closing the existing position at the daily close rate and re-entering at the new opening rate the next trading day - the trader artificially extends the settlement period by one day. Each currency has an interest rate associated with it, and because forex is traded in pairs...
Forex trading can be very simple or extremely complex, and this largely depends on the type of investment and the profits that investors wish to generate from the trades being conducted. However, no matter how experienced a trader may be, it is always important to know when to cut losses in the market. One of the most enduring sayings on is "Cut your losses short and let your winners run." Sage advice, but many investors still appear to do the opposite. Every trade conducted has the possibility of going bad, which is why traders should always...
While losing a few trades in a row does not necessarily mean you need professional help, it does mean you need to stop and pull yourself away from the market and objectively think about your trading decisions. Over trading and obsession with the market are two very real problems that many traders experience, with a little time and effort on your part you can easily overcome these often made trading errors. If there is one feeling that currency traders universally abhor, it would probably be the emotion derived from watching a losing trade...
One of the biggest misconceptions that you can have about forex trading is that you can quickly start making a living from it in a relatively short period of time. If you have any hopes of eventually making currency trading your career, you need to disabuse yourself of this belief since it may eventually cause you to become discouraged and give up. The truth is, as with any career, you have to start small and then gradually build yourself up. As we all know and are constantly reminded everywhere, 90-95% of traders fail. There are plenty of...
As a trader, you have probably heard the old adage that it is best to trade with the trend. The trend, say all the pundits, is your friend. This is sage advice as long as you know and can accept that the trend can end. A popular trading expression is "the trend is your friend". This expression has stood the test of time because many traders find it as a critical building block of a trading plan. So the important question is, how can we determine the direction of the trend? In its most basic sense, a trend is simply a prolonged...
