Currency prices are what the market is all about, but interest rates have a direct effect on those prices. Therefore, to be able to understand the current foreign exchange market you have to understand the current conditions of each individual interest rate. While economic and political conditions are also among the things that greatly affect the forex market there is nothing that affects it more than interest rates. When the interest rate of a country raises the demand of that country’s currency goes up and its value gets appreciated and...
One of the main reasons many traders are not making money consistently in the markets is because they are too focused on money. The more focused you are on making money really fast the more the money will elude you. Focusing your mind on the money creates emotional tension and the more emotional you are the more likely you are to commit the account-destroying mistakes. Trading forex provides an excellent opportunity to earn additional income or even as a full time career, but most of the new beginners set out without well prepared forex...
Trading is like any other business where losses are a part of the game. But losing over and over again can lead to psychological scarring that can paralyze and fill the trader with dread when approaching the trading table. It is well known that fear of losing actually leads to losing. Stops are placed too tight instead of giving the price action room to breathe. Trades often pull-back after entry which causes the fearful trader to panic and exit with a small loss to prevent a larger loss. Traders focus should be on avoiding large losses not...
An expert advisor (EA) is a software program that analyzes data and provides a trader with buy and sells recommendations that fit within the trader’s strategy. Much like a trader, an expert advisor analyzes historical data and forecasts future price movements using this data. Unlike a human trader, expert advisors are able to integrate a huge amount of data and process it very quickly for the purpose of forecasting. Forex expert advisors are computer programs which take and execute trading decisions of trading strategies or trading rules...
Forex trading plan is one of the most important tools in forex trading for new traders and also for experienced traders too. Before you start trading you should know that having a forex trading plan is one of the most important pieces of the puzzle for becoming a consistently successful forex trader. Most of the forex traders who are new in the forex market are trying to trade without forex trading plan which is one of the biggest mistakes can be made. You should know how important is after you create your own forex trading plan to stick to...
