Risk appetite flickered back into life in financial markets on Tuesday with the dollar and European and Japanese shares rising while safe-haven bonds, the yen and gold all took a step back.The dollar rose to its highest since January against the yen and the euro sank to a one-year low against the greenback as another drop in euro zone producer prices heightened speculation about what the ECB will do when it meets on Thursday. With U.S. markets closed for Labor Day, investors in Asia had been somewhat subdued, but the mood in Europe seemed...
Accept the possibility of losing your money as an inevitable fact. Every beginner trader should be aware that no one is safe from losses in the currency market. The basic rule of online currency trading is to keep the profit above the losses. Bid only with a carefully thought up out plan. Before you start trading, you should determine how much of your own money you are willing to risk and what profit you expect. This will be your balance of risk and profit. Successful traders never enter trades without a clear goal. Do not be...
When you first hear about forex trading and make some trades in a demo account it seems like it would be easy to simply make a few trades and walk away with a profit. However, when most people try it they find out that it feels more difficult once they commit their hard earned money to a trade. When you are trading in a demo account taking risk seems to be easier. You have no emotional attachment to the money that is in your demo account because it is not real money. Trading psychology is the perception change that you go through once you...
Psychology is one of the weirdest areas of Forex trading. You can be making perfect trades most of the time on your demo account but as soon as there's real money on the table - even if it's on the tiniest of trades - your system goes to pot and your bank starts to evaporate. If that's the case with you, it's time to examine your Forex trading psychology and see how you can improve it. Think in PIPs The amount of pips you risk on a trade will stay near enough constant regardless of the size of your bank. This is actually a...
At the beginning of this week 20 major currencies of developing countries fell sharply against the American dollar, with especially hard-hit Indian Rupee. Financial markets of developing countries are having growing tension. The rupee had fallen by 2.4% (to 63.2 rupees to the dollar). Since the beginning of the year rupee fell by 12%. Investors are afraid for the economic future of the country. Only Chinese yuan wasn’t “injured” among the others due to rate protects by the People's Bank of China. The People's Bank of China several months is...
