Trading Psychology Phases of a Beginner in the Forex Market
The psychological factors involved in Forex Trading especially for a beginner are crucial in his first steps. From the entry point when newbies open a demo account and perform a few successful trades they ultimately think that they will open a live account and generate huge profits. As soon as they start trading, this time with their personal savings, the emotions involved can truly be overwhelming leading almost always to failure. From this point onwards various phases occur in his trading psychology which can either be constructive or detrimental for a trader’s career.Forex Trading Psychology – A Beginner’s First Emotional Pitfalls
You may have witnessed cases where you started trading when the market was expected to head into a certain direction according to technical patterns but the market ended up persisting with its current trends instead and did not follow with the expected changes. Newbies need to be prepared for such scenarios as dealing with similar situations isn’t exactly a walk in the park. Before jumping into the market, a thorough research is vital; both simple and technical. Ignoring either of them, often leads to “burns” which can negatively impacting their confidence and their ability to trade and make future earnings in Forex. If beginner’s can acknowledge and overcome this first crucial hurdle, their learning and development opportunities in the Forex market can truly be great.Forex Trading – How to Open a Live Forex Account
Opening a live account in Forex can be a tedious task for beginners especially without a guide for the first time. This article clearly gives guides on how to open a live Forex account with any Forex Broker.Navigating the Uncertain Waters of Foreign Exchange
Dealing with uncertainty and volatility in the Eurozone and Global Marketplace is becoming a familiar burden to bear. As such, businesses need to protect themselves against mounting exposure and risk. Please read this article to see how it can impact your business.How Much Money Is Needed Forex Trading?
Many people are curious to how much capital is needed to start trading Foreign exchange. In this article we aim to outline how much money is needed to successfully trade Forex.Problems With Automated Trading Systems
Every day more and more beginners and skilled forex traders are getting to know and like how Forex Robots can work for them on auto-pilot. Expert Advisors can operate as a perfect Forex trader, the main difference is EAs are automated and can be programmed. This incredible software can truly work for you 24 hours a day and five days a week. If traders rely on these EAs for their trades, is it truly all that there actually is to it?The Best Forex Trading Strategies to Check Out
The forex market is an exciting place to trade in. It is open 24/7, works on a global level, and keeps fluctuating based on news, trends and technical readings. Every trader gets many opportunities to make money every day. In fact, many experienced traders shift their positions many times during a trading session.Risk Capital – Capital in Futures or Forex Account
The amount of capital you are putting into your futures or forex account is supposed to be risk capital. But just because it is risk capital doesn’t mean you treat it as if it is disposable. This is not Vegas. There is no house money, there are no acceptable losses, and we never let our capital ride! When it comes to trading, it is a business. You calculate your profits and losses, return on investment, return on capital, and maximum potential loss (look to the trade worksheet) in order to gain the optimum opportunity before you ever put your first dime on the table.Recognize the Fear and Prepare Accordingly
No matter who you are or your length of trading experience, there is a consistent set of demons nipping at your heels: fear and greed. These two psychological pressures tear into you and make it difficult for you to find equilibrium in your trading.Selling Options Against Futures or Cash Position
The simplest approach to implementing a covered option position involves the combination of a cash position with an option. The crux of the idea is that when a stock’s shares flatten out or get weaker in price call options can be sold to generate income. If the stock’s price goes down the trader gains the premium, which diminishes his losses in the shares.The Top 12 Candlestick Indicators
If you have been trading for more than two weeks, you probably know about candlesticks. They are one of the most innovative tools in enlightening a trader on day-to-day momentum. They are excellent for intraday trading and, more importantly, for entry and exit signals.Average True Range As a Stop-Loss Indicator
While support, resistance, and Fibonacci are used as both entry and exit triggers, average true range (ATR) tends to be a one-trick pony. Once you have entered a trade, you are able to use ATR as a stop-loss indicator or as a way to place your protective short or long.Different Ways to Determine Resistance and Support
There are many different ways to determine resistance and support. I prefer horizontal lines/trading ranges. You can also use diagonal lines/trend lines and internal trend lines to determine specific prices.MACD: Moving Average Convergence/Divergence
When it comes to trading the forex market, there is no OI data to follow. While you can use futures and options by proxy to give you an idea of the potential momentum activity that is occurring in the spot market, it is also just as common to use the MACD to determine momentum.Technical Analysis Strengths and Weaknesses
Technical analysis has many strengths and weaknesses. Each strength gives it a sense of reliability, while each weakness puts you one step closer to making a fatal mistake. By becoming adept at knowing the weaknesses, you are able to shore them up with the proper money management and risk management techniques.