Foreign Exchange Wealth Demystified

  Risk according to Merriam-Webster dictionary is possibility of loss or injury; the chance that an investment (such as a stock or commodity) will lose value . A trader’s appetite for risk is a crucial factor in forex trading career . The market is not for all time winners. There are moments you just have to let go.   In my candid opinion, taking losses as part of the game is the bedrock of good trading technique. Trading is not about your winning percentage, it is all about how much money you can consistently pull in profits. Take a look at the following Statistics: Traders No of Times Traded Trading Period Winnings Return On Investment (ROI) A 80 10 Months 58 $4000 B 40 10 Months 5 $15000   Trader A – Traded 80 times over 10 months. He won 58 trades. Made $4,000 in profits. Trader B – Traded 40 times ove...

  The mix feelings that runs through the spine of a trader when trading a live account makes up the psychology of trading. There are two emotions in particular that have been the source of ruin for traders over the years, they are greed and fear. Fear will cause you to either not make a trade when the opportunity arises or close a trade prematurely without giving it a chance to be profitable. Greed will cause you to make trades that are too large or too risky, while trying to make massive gains. Remedies for psychological biases when trading foreign exchange market are as follows: ·         Be dynamic. ·         Know when to exit your trade. ·         A reversal is inevitable in every trend. ·         Do not hold past the point you should have exit i.e. trade with stop loss. ·         Critically app...

  The word FOREX is a combination of two words viz-a-viz i.                     Foreign ii.                   Exchange It is a global market for exchange of currency speculatively. In other words forex trading is synonymous to bureau de change business. Trading forex is the most profitable venture an investor can undertake. The action involved in forex trading is the exchange of one currency for another, i.e. buying and selling with the aim to make profit. A trader sells weaker currency to buy a prospective stronger currency and vice versa. Forex trading is the most ideal business that is capable of making you a millionaire within the shortest time possible. There is possibility of making a big time income! Merits of Forex Trading Control: A trader is in total control of what goes right or...