These are very troubled times in the global financial markets, but does this mean that it is a bad time to trade the foreign exchange market?
About a year ago when the U S dollar was in free fall against a basket of currencies, Warren Buffett announced that he had great faith in the long term strength of his national currency and he made a very large purchase of the U S dollar.
At this moment in time, when markets are diving and previously strong currencies are dropping like a brick, the U S dollar has shrugged off the overall state of the economy and is gaining strength – Just as Warren Buffett predicted.
How did he know?
In times of turmoil and financial depression there are always those few who do rather well. So what is their secret?
In the book – The Hitchhikers Guide to the Galaxy by Douglas Adams – one of the central characters is a researcher for that guide, and he states that one of the things that has made the guide so popular is that emblazoned on the front cover are the reassuring words:- DON’T PANIC
I would suggest that these words would apply equally to all
traders at present.
The reason that there are a few who succeed when chaos is all around is that amongst other things, they understand the need to not panic. They know that there will still be opportunities, but unlike during the “good times” those opportunities need to be watched and waited for. They also understand that this will not be a good time to make rash decisions. High…
by Martin J Bottomley
Advantages and disadvantages of becoming a
trader putting money in the
market. Ready to start? First we will take a look at the positives of
The first positive point of investing in the currency market is independence. The secondary positive point is the ability to make millions without ever leaving the house. The 3rd supporting point will be you can get started with very little capital. pro number four is trading the
market is once you find a system it is easy to learn. The fifth positive point is information is very easy to come by.
And alternatively, to help keep this balanced, there’s Con; Against: First on the negative column for investing in the currency market will be losing your investment is a very real possibility. the second con is learning curve is a real issue that must be considered. third on the list is it will take a large amount of capital to make a large amount of money. 4th point in contra will be you have to understand yourself psychologically. Number 5 and last in the cons column is if you are trading right it should be boring like factory work. that is the list of both the negatives and the positives of making money in the currency market Here is the conclusion putting money in the
market worth the risks.
You can clearly see the answer is yes more good than bad? or maybe more bad than good? The response appears to be “Yes” to both questions! putting money in the
market is both good and bad. Your reader must…
Source by Mark A Brennen
Basically, foreign exchange trading or simply FOREX trading is just the buying and selling of the world’s currencies. Money today is not the same as money tomorrow. Money has time value. The worth of a currency can go up or down.
There is one secret that FOREX traders live by. And it is buy low, sell high. Don’t ever forget that rule.
However, the trick is to know when to buy and when to sell. In FOREX trading, everything is by speculation. Sure, there are graphs to aid decisions. Business pages also give out strategies for the day. But the next step is always a guess based from the previous actions.
FOREX traders like to call their speculations as smart guesses. Usually, patterns on the currency values can be derived from how the politics of a specific country is running.
For example, if there is a plan to oust the president, most probably the value of that country’s currency will go down-how low, we don’t know. Usually. Because there are still a lot of factors to consider why a currency is going strong or not.
Improvement on the tourism sector can mean more foreign investments. This will be good for a particular currency, but this may affect how the other countries are doing.
These are just trade scenarios. As the cliche goes, one man’s medicine may be another man’s poison. One country’s good tidings may be another country’s, well, downfall.
That is why in FOREX trading, another secret to live by is to be aware of the national news in the country concerned.
Current events have…
Did you know that 1 out of 10 traders loses money in the financial markets when trading?
Despite the damning statistics and the inherent uncertainty in the outcomes of trading, traders continue to take the risk and invest their money with the hopes of getting a return.
Experienced traders and stakeholders have highlighted several ways in which traders lose money. From this information, we have selected top ways traders fail that can assist you to avoid making the same mistakes.
Trading to learn
Most traders who have sustained losses from their trading experience acknowledge that they started trading without receiving any formal training from a professional. Armed with only the basic information about markets, some people invest and start trading hoping, ignorantly, that luck will be on their side. Instead of learning how to trade, these investors begin trading to learn how the markets work. This reversed prioritization of events leads to insurmountable losses, making it harder for the trader to ever recoup the lost money.
Understanding the risk level of a trade and the risk category that investments are placed is the first step to avoiding losing money when trading. Conducting a risk assessment of the investment opportunities in the market enables a trader to determine the leverage that they hold against the investment and whether it is worth placing a wager using the leverage. Without a risk assessment, a trader may place a wager on a portfolio that has a…