Due to the availability of leverage, forex traders can make a return on a single trade that is multiples of the margin they used to open the trade. However, leverage is a double-edged sword in that big gains can also mean big losses. Therefore,...
In the global investment world, foreign exchange has become a new asset class. Through domestic commercial banks, customers can exchange freely convertible foreign exchanges or foreign currencies into another freely convertible foreign exchange or...
Besides illustrating significant trading periods, bar charts are used for other purposes as well. They provide more information on price than line charts. Bar charts represent one day of trading and include the opening price, highest price, lowest...
Any timescale of the chart can be used with Bollinger Bands, including weekly, daily, and five-minute forecasts. Various trading strategies can be accommodated by the variables. If the instrument's price advances near to the top band, it usually...
Traders from other markets are drawn to forex because of its extremely high level of liquidity. Liquidity is crucial as it allows traders to get into and out of a position with ease 24 hours a day, five and a half days a week. This allows large...
Traders conduct weekend analysis for two primary reasons. One reason for doing this is to gain a broader understanding of the market one is interested in. The markets do not operate on weekends. The markets are not in flux over the weekend. Since...
A position trade is the trader holds the currency for an extended period, typically months or even years. This form of trade involves a higher level of fundamental analysis expertise, as it gives a rationale for the trade.
The potential for trend following systems to generate excellent returns in the stock market is undeniable. The history of these systems stretches back more than fifty years, and their returns have been in line with, and in some cases, outperforming,...
The benefits of day trading are numerous. For this to be accomplished, however, it takes a lot of practice and time. It is not enough to rely on the forex day strategy to achieve your goals. To become a successful trader, you must learn its concepts,...