Day trading is a mugs game - in FOREX currency markets, traders who make day trades instead of following the long-term trends, are making a serious mistake - risk/reward is terrible by comparison.
The Internet is full of brokers and vendors encouraging traders to day trade - and offering “sure fire” day trading systems - which is no surprise, as they mostly have a vested interest - they are making more commission!
Don’t get sucked in by the hype surrounding currency day trading.
The presented article covers one of the most important (in author’s opinion) aspects of trading in general and FOREX trading in particular – managing of orders and positions. This includes choosing entry points, making decisions about exit points, stop-loss and take-profit of the trader. I hope this article will help new traders, who just began to work with FOREX, and also to experienced traders who trade regularly and regularly make or lose their money to the market.
When I started to ...
Most FOREX traders rely on analysis to make plan their trading strategy. This article will discuss fundamental analysis. The other common form of analysis is technical analysis. After reading this article you should have a better understanding of fundamental analysis and how to use it as part of your FOREX strategy.
Political and economic changes are the basis of fundamental analysis. These can frequently affect currency prices. Traders that take advantage of fundamental analysis will g...
Are you researching the topic of Forex and the foreign exchange market for education? Or are you a trader who is looking for other markets to play around with? Well hopefully, we will give you an introduction to the Forex markets that will accommodate both your needs and inform you of the basic concepts and issues that intertwine with the world’s currency exchange market. Foreign exchange markets are always in a constant state of flux, and for the budding forex trader, it can be...
You've probably seen it mentioned in various trading forums. It may have even happened to you a few times. It's enough to make your head explode. What is it? It's called Stop Hunting.
Here's a typical trading situation. You're convinced that the USD/JPY is heading up. You've entered a long position at 123.40 and you've set your stop at 123.05, slightly below an obvious double bottom. You set your initial target at 124.50, giving you more than a 3:1 ratio of reward to risk....
Whether you are a seasoned trader or new to FOREX, without a good money management it will be hard to ever make a dime. Good money management will be out a great trading system any day. Without knowing how to keep losses to a minimum will only jeopardize you’re trading efforts even if you have more winning trades than losing trades.
One of the worst mistakes traders make is trading without sufficient capital. This does not mean a trader has to have a lot of money to trade with, but e...
The rise of the Internet and cheap powerful computers has made FOREX online system trading a reality for any trader, novice or pro.
Now its possible for individual traders to manage their funds and target 30 – 50% annual compound growth.
The advantages of FOREX online system and how to choose a good one are outlined in this article.
Let’s first look at the advantages of currency system trading.
1. Emotions and trading
The major reason traders loose is they trade ...
There are a number of deciding factors for determining the price of a particular currency. The most important factors are the political and economic conditions in the country that issues the currency. Many things like the political stability, interest rates, and inflation will all affect the price of a currency. In some cases the issuing government will attempt to control the price of the currency by either flooding the market to lower the price or buying up the currency to increase the pri...