|В категории материалов: 44
Displaying materials: 15-21
|Pages: « 1 2 3 4 5 6 7 »
The world of trading and investment can be as frustrating as it can
be rewarding! And Forex (Foreign Exchange) is no exception — often
described as risky, profitable and complicated.
Forex is the largest trading market in the world.
Forex, FX and the Forex market are some common abbreviations for
the Foreign Exchange market. Actually it is the largest financial
market in the world, where money is sold and bought freely. In its
present condition the Forex market was launched in the seventies, when
free exchange rates were introduced, and only the participants of the
market determine the price of one currency against the other proceeding
from demand and supply. As far as the freedom from any external control
and free competition are concerned, the Forex market is a perfect
Keen on starting Forex trading? Why would you not be: Many
beginning Forex traders are captivated by the allure of easy money.
Forex websites offer 'risk-free' trading, 'high returns' and 'low
investment' — these claims have a grain of truth in them, but the
reality of Forex is a bit more complex. As with anything in life, what
you put in will determine what you get out.
There are two common mistakes that many beginner traders make
— trading without a strategy and letting emotions rule their decisions.
After opening a Forex account it may be tempting to dive right in and
start trading. Watching the movements of EUR/USD for example, you may
feel that you are letting an opportunity pass you by if you don't enter
the market immediately. You buy and watch the market move against you.
You panic and sell, only to see the market recover.
Anytime that you are investing in the Forex market, you are going
into the Market blind. You don't know what point of the investing trend
you are entering in at. You might be investing in a Forex stock just
before the trend changes. Smart investing means you need to protect
your trading float and set up a stop loss. This needs to be done before
you enter a trade, so that there is no room for error, or last minute
indecision. A stop loss is simply a predefined point at which you exit
Effectively, it's like drawing a line in the sand underneath
the share price, saying, "If the share price falls below this line,
then the stock hasn't done what I thought it was going to do, and I'll
exit the position."
Market knowledge and ability to understand analysis will only get
you so far in forex trading, but without the nerve to actively compete
risking your own money in the process you can never become a successful
Wagering huge volumes of money in a market as susceptible to
change is liable to cause a whole range of opposing emotions; fear,
excitement and anxiety just to name a few. Battling against your
emotions in order to complete a successful deal is one of the major
hurdles, which must be overcome if you are to become a trader able to
close huge deals and earn vast sums of money. If you can overcome or
even use these emotions to make trades on the Forex then a successful
career may be beckoning, but failure to do so will almost certainly
cost you a substantial amount of money and end any lingering desires to
progress in the busy world of exchange rate trading.
It should be noted that millionaire traders, Elder, Williams and
some others are in fact professional psychiatrists. And it is not
accidental that not the economists are the leaders and most successful
traders, but professional psychiatrists and psychotherapists. Think
about it. You will become a successful trader when you understand why
it happens with Forex. You will understand what your Forex mistakes
are, and why you are making them. And when you correct these mistakes
you will become a trader who has no psychological barriers and
obstacles on his way to better earnings in the Forex market.
Forex traders almost always rely on analysis to make plan their
trading strategies. There are two basic types of Forex analysis —
technical and fundamental. This article will look at fundamental
analysis and how it used in Forex trading.
Fundamental analysis refers to political and economic
conditions that may affect currency prices. Forex traders using
fundamental analysis rely on news reports to gather information about
unemployment rates, economic policies, inflation, and growth rates.
Fundamental analysis is often used to get an overview of
currency movements and to provide a broad picture of economic
conditions affecting a specific currency. Most traders rely on
technical analysis for plotting entry and exit points into the market
and supplement their findings with fundamental analysis.
Currency prices on the Forex are affected by the forces of
supply and demand, which in turn are affected by economic conditions.
The two most important economic factors affecting supply and demand are
interest rates and the strength of the economy. The strength of the
economy is affected by the Gross Domestic Product (GDP), foreign
investment and trade balance.