Fibo Quantum Download



Investors in any market, be it securities or currencies, wants to know what causes price fluctuations so they can predict them and make a profit. While stock investors research publicly traded corporations in order to make trading decisions, those on the Forex must consider what influences the currency exchange rates between nations. Because it is so volatile with significant fluctuations in short term prices, it is especially important for the Forex trader to understand what moves the markets in order to be successful and make a profit.

Partly because trades occur 24 hours a day between Sunday and Friday afternoon, the Forex is a very volatile market. Just as with equities, pricing on the Forex is influenced by economic and political factors facing the nations involved in the currency pair. Because the U.S. dollar is used to back 90% of all the transactions on the Forex and its economy plays such a significant role in the world economy, economic data released by the government will affect market prices—temporarily. Here are some of the prime releases that Forex scalpers or day traders tend to look at when determining whether or not to enter a position:

1. Interest Rate Decisions
2. GDP rate increase/decrease
3. Unemployment data
4. Inflation: Consumer/Produce price
5. Retail Sales
6. Consumer Confidence Surveys
7. Business Confidence Surveys
8. Trade Balance
9. Manufacturing Confidence Surveys

However, while all of these forces no doubt play a short term role in price movements on the Forex and other financial markets, their influence is very temporary and the prices soon reflect them. It is not common for Forex scalpers or day traders to enjoy long-term success because the volatile nature of the market makes losses more likely with more trading.

There is another force that does play a role in the movements of all financial markets: human behavior. Indeed, Psychology is a very big factor in any investment decision and its effects can be studied in financial charts. Four human emotions play very big roles in the price movements on the Forex:

· Greed
· Fear
· Faith
· Hope

Greed compels even technical traders to ignore stopping points and chase a trend too far—to the point of loss or losing a significant portion of profits. Once an exit point has been reached—cash out.

Fear of loss is a very common human emotion and it definitely causes many investors to take a loss too hard and quit investing. However, simply setting acceptable stop/loss orders will prevent you from losing more than you are comfortable with.

Even faith and hope can cause us to chase profits too far or not get out when losses start to mount. Technical analysis, continuous back testing, and sticking with an investment strategy while being open to adjustment—these are all common traits in the most successful traders. Although the economic indicators and news releases do play a short term role in prices, it is ultimately human Psychology that moves the Forex.


Infinity Scalper Download

FX Atom Pro Download

Tagged with:

Filed under: Forex Trading EA, eBooks, Videos, Books

Like this post? Subscribe to my RSS feed and get loads more!

Possibly related posts

  • Forex Scalping small—are made aware of the same information at the same time. Because small retail Forex traders are able to raise and move capital faster than larger institutional investors, they should have the advantage when it comes to taking advantage of short-term movements in exchange rates caused by the release of new information.
  • Forex Technical Analysis By the time economic data and current events filter down to the small investor, all of the big players have already moved their currency and taken advantage of the information. Day trading is a very dangerous game in the Forex because the market is so fluid and investors are highly leveraged so using fundamental
  • Forex Trading Using Intermarket Analysis Forex Trading Using Intermarket Analysis [Louis B. Mendelsohn] on . *FREE* shipping on qualifying offers. In today's global marketplace, currency values fluctuate every day, and foreign exchange is the biggest market of tham all
  • Human Emotions In Forex Trading However, while those fluctuations in exchange rates can lead to large profits—they can just as easily zero out an account! In fact, they can cause losses to mount even faster than potential profits because Forex accounts tend to be highly leveraged—as much as 100:1—or even more in some cases!
  • What Drives Currency Markets (Financial Times Series) Rated 0.0/5: Buy What Drives Currency Markets (Financial Times Series) by Brian Kettell: ISBN: 9780273630715 : ✓ 1 day delivery for Prime members
  • Short-Term Trading in the New Stock Market Short-Term Trading in the New Stock Market [Toni Turner] on . *FREE* shipping on qualifying offers. In an uncertain market, can traders and investors find profits in short-term stock movements? Bestselling author and trader Toni Turner teaches readers the techniques and strategies needed to trade in today's up-and-down stock market. The book begins with Seven
  • Best Forex Systems: Price Action (How to become a forex trader Book 2) Best Forex Systems: Price Action (How to become a forex trader Book 2) – Kindle edition by Marek Krzemienowski, Henryk Wozniak. Download it once and read it on your Kindle device, PC, phones or tablets. Use features like bookmarks, note taking and highlighting while reading Best Forex Systems: Price Action (How to become a forex
  • Why You Need Stop Loss In Forex Trading? If you get 30-50 pips hit at one time or two, it is not yet a huge problem; just make sure you have a good money management. However, once the market hit 8 of your trades or 10, now that is a significant number that will drain your assets down.
  • What is a forex Simple Moving Averages? Finally, the most important thing to remember when using the moving average technical indicator is that it’s always moving. Therefore, all the new candles on your Forex chart will have an effect on the MA. There are additional resources available if you want to know more about Forex simple moving averages.
  • The Offshore Renminbi: The Rise of the Chinese Currency and Its Global Future The Offshore Renminbi: The Rise of the Chinese Currency and Its Global Future [Robert Minikin, Kelvin Lau] on . *FREE* shipping on qualifying offers. The rise of the renminbi and what it means for forex markets Chinese authorities have ambitious plans to internationalize the renminbi