Forex trading is a system designed to allow people to trade currencies in different markets. For example, if you place a 100 bet on the yen and it is, you make money. Over the last few years it has become incredibly popular not because of its serenity but because of its restless nature. Sounds weird, but there’s a good reason for it.
A volatile market can mean only one thing – a series of big spikes both above and below. This means that the profits are much higher than in any other online trading and it is not surprising that traders earn up to 100 times what they initially invested.
In contrast to options and stocks, the forex trading market is affected by many variables, one of which is news. If there is any problem during the news, the market is agitated. This is a time when some of the biggest spikes can happen and a huge percentage of people make both huge gains and huge losses.
Sticking a strategy
Some of the most successful online businesses will agree with this strategy – find a strategy and stick to it. There is nothing magical about forex trading, the price goes up and the price goes down. Whether you make money or not depends entirely on your predictions.
There is no place for gut instinct in forex trading. Emotions stand in the way of your desired results and are one of the biggest reasons why 90% of traders fail in the first 12 months. Of course there are many scientific ways to help you improve your adversity when trading Forex.
Simple moving average
One of these strategies is to use a simple moving average. This is where we find a set of averages from the previously existing spikes. Once you set this average you can make an assumption that whenever the price exceeds this average in the future, it is a sure sign to buy. There are definitely programs out there that can do this for you because it can be a fairly time consuming task.
Some tips for beginners
Before you even think about forex trading, spend at least a week reading from people who know what they are doing. Then, when that week is over, go back and analyze to determine if the information you read is reliable. Then go read another week!
If there is anything to be said to a beginner about the Forex market or any other type of trading, it is – do not trust anyone but yourself! Be sure to ask for advice, but make sure your investment decision is yours alone. Measure the investment to determine if you can afford to lose what you are going to keep and never go overboard!
If you don’t have a goal, you should find a strategy that works and sticks to it. Don’t go for less that your full potential. Find a good strategy that works well and stick to it.
Fox and hedgehog
We can say that humans are classified as one of two things – they are either a fox, or a hedgehog. A fox is a person who knows a lot about a lot and therefore has a tendency to jump from one strategy to another. In other words, they are very cunning and use lots of tactics to try and get the hedgehog. Hedgehogs know a lot about one thing. It knows that no matter how hard the fox tries, it only has to crawl into a ball, and when the fox pushes, it spikes in its mouth and so the hedgehog survives.
Don’t be a fox, be a hedgehog. Become a Tactical Expert in Forex Trading and I promise you will reap the rewards.