Fat finger trades & flash crashes; these are terms that many of you might have heard on financial news channels or even seen plastered across headlines in newspapers, but do you really know what they mean?
No matter how hard you try, it will be impossible for you to climb up the trading ladder until you've learned how to risk live money. Trading in the live market draws in psychological elements that are generally not experienced in a simulated environment. This, as you'll see throughout the article, is the key difference…
When experienced stock market speculators attempt to apply their battle-tested systems on Forex pairs, they often suffer the same setbacks as aspiring traders. Why is this? What makes the Forex market so different from stocks, bonds, or indices?
Mistakes in the trading business, however, can be costly. In addition to this, it can also discourage newer traders, eventually forcing them to throw in the towel. To help shorten the learning curve, we've come up with a brief list of the most common mistakes we see occur on a regular basis…
Unless you intend on trading one market at a time, it is vital to understand how different instruments markets interact with one another. A correlation, in simple terms, describes how much (or how little) two markets move together over a period of time.
In the early stages of trading, the identification of a trend emerges as a compass to the markets. We have all heard the phrases "the trend is your friend", "never go against the trend" and "trade with the trend". But, what is a trend and why is it so important? A trend is simply the prevailing direction of the market. It is the direction that future prices will most likely follow. So, the early identification of the trend is imperative in trading the financial markets. Whether it's going up, down or sideways, has to be determined before entering the market. Many trading systems have been developed with precise rules on when to open a trading position, exit a losing trade and of course lock potential profits. Trend identification is one of the cornerstones of successful trading
ActionForex.com was set up back in 2004 with the aim to provide insight analysis to forex traders, serving the trading community over a decade. Empowering the individual traders was, is, and will always be our motto going forward.