The Dow Theory has been around for over 100 years and while it is not always 100% accurate, it is something most equity analysts, investors and traders pay attention to. While it is applicable to equity markets only, in today’s interconnected financial markets it is important to have a broad view and deep understanding in order to spot profitable trading opportunities. The Dow Theory doesn’t impact the forex market directly, but ripple effects will be send through the system and it is wise to fully understand what caused the waves in order to...
Intraday trading is said to be one of the most complicated types of Forex trading and, at the same time, the most widely used by independent traders. Short-term trading is considered a rather difficult type because its results are influenced by the market noises, which can have a significant range sometimes compared to the average range of day fluctuations. Day trading is suited for forex traders that have enough time throughout the day to analyze, execute and monitor a trade. If you think scalping is too fast but swing trading is a bit slow...
Currency trading is a process that requires a certain level of expertise. It takes knowledge and practice to become successful but even then you might not feel like you are getting enough out of it. After you have started trading on Forex you might notice that you are missing on some action due to it happening while you are not watching. This is when any trader striding for success will ask can you trade Forex 24 hours a day? And do not rush to answer it with a “no” because when it comes to trading this is not necessarily the...
Just like at the stock market the large amount of transactions on currency exchange market is processed by brokers. Broker could be just a single person or an entire team of people but in both cases their main job is to process transaction for a commission. When you are considering to trade on Forex and have already done some research you will most likely ask yourself: do I need a broker to trade Forex? And there is no easy answer to it so let’s try and dig a little deeper. Can someone start Forex trading without a broker? First, we...
The key to mastering your trading skills is not the same as any other skill. For example, if you would like to learn how to cook you need to prepare as many dishes as possible in order to become good at it. Same goes for driving, knitting, playing tennis etc. When it comes to foreign currency trading, however, the secret is the work you do before you actually start to trade. It includes, studying the market and building predictions on what is going to happen next. This is usually referred to as technical analysis of the market (not to be...
