Foreign Exchange Wealth Demystified

       In recent times, I have had to question my mentor and gurus in forex trading why forex traders drained their margin within the short time of funding their accounts. The response I got from them was that, forex traders neglect the most important pursuit for a shadow of reality.      It is a known fact that forex trading is highly risky but cannot be compared to the reward it offers and the wealth potentials it affords brilliant, smart, professional and diligent traders. Come to think of it, why is the business risky? It is simply because a forex trader is trading the currencies of nations of the world as a stock per seconds. The players involved in foreign exchange trading includes, Commercial Banks, Central Banks all over the world, Firms that realize foreign trade operations, Companies that realize depositing of foreign assets (Investment Funds, Money Market Funds, International Corporations), Currency brokerage firms, Physical bodies, and re...

              Know-how is a philosophy; something that you embrace as a fact of life and you commit yourself to its application.  Forex Know how  on the other hand  is an ability to know how FOREX Market works;  it is being in a position to analyze the price action on pairs of currency and make informed decision flawlessly on such currency pair. I call it an all-round knowledge of a market action. This  complete understanding of forex market movement to the point that nothing confuses you  about it takes into consideration the followings:               i.           The Market Direction              ii.           Entry point        ...

In the Forex reports there are 3 statistics to make use of: ü Previous ü Forecast ü Actual When the Actual outcome is greater than the Forecast outcome it means a more positive situation for the country’s economy. So you go long in agreement with Moving Average Crossover prediction of the Price. On the contrary, the opposite occur when the actual outcome is lesser than forecast digits. This indicates a negative economic situation for that economy, so you will go short in agreement with Moving Average Crossover prediction of the Price. In a situation where there is equal outcome you stay out of the trade and wait for the next high impact economic report. It is worth mentioning that you need    to take into consideration the variance in the statistics released so as to have a desired result. If there is a wide difference in figure released reversal is sure to set in and mop up the gains, so the market will not trend well as expected. Do not stay more than Fiftee...