Traders are constantly monitoring various economic indicators to identify trends in economic growth. Some of the most watched economic indicators include the Consumer Price Index, housing starts, gross domestic product and the Non-Farm Payrolls (NFP) employment report. Out of these indicators, the (NFP) employment report contains a variety of data and statistics regarding the employment information of the market. The (NFP) employment report is released on the first Friday of every month by the Bureau of Labor Statistics, providing data...
Currency trading requires reference points which are used to determine when to enter the market, place stops and take profits. However, many beginning traders divert too much attention to technical indicators such as moving average convergence divergence (MACD) and relative strength index (RSI) and fail to identify a point that defines risk. Unknown risk can lead to margin calls, but calculated risk significantly improves the odds of success over the long haul. Forex traders use a wide range of technical indicators to guide their trading...
Macroeconomic indicators are statistics that indicate the current status of the economy of a state depending on a particular area of the economy (industry, labor market, trade, etc.). They are published regularly at a certain time by governmental agencies and the private sector. These important economic indicators create volatility, and plenty of speculation is always surrounding them. Not only do forex traders continue to monitor this important piece of economic data, they use it to either establish a new position or support a current one....
A trading strategy is a set of rules that help a trader make decisions in the market. It takes away subjective judgment and guessing. A strategy is based on an edge and the rules identify when that edge in the market is present. What are the best conditions in order to enter the market? What are the best conditions in order to exit the market, i.e. where are your stop losses and profit targets. There are many trading systems and strategies out there. There are many free ones printed in trading articles, journals, books and on trading-related...
The ability to control your emotions and maintain discipline is the most important thing you can do. A trader must learn to contend with market challenges of individuals and the crowd psychology in order to progress from a novice to an expert. If you want to turn a profit when investing in the forex market you have to understand that trading is primarily a game of psychology. Only the toughest players survive it. The real edge separating professional traders from failed traders is clearly their mental approach to the market. Simple as it...
