There are two primary ways to become a more successful Forex trader - to practice, and to learn about the industry. At DailyForex, our goal is to simplify your trading so that you can trade easily and smartly. To this end, we offer you a collection practical articles written by our Forex experts to help maximize your trading success.
You can also check out our compilation of the best Forex articles for additional information about the trading trends, emerging mobile platforms and more.
The foreign exchange market is unique in many ways. It is the largest market in the world with close to 3 trillion dollars daily. It is quite possibly the least regulated market as well, with anybody able to open a Forex position from the comfort of their own home or even on their mobile phone. It also enables individuals with very little capital to trade tremendous sums of money with the high leverage offered in the Forex market.
For some forex traders, deciding on one trading method can be a difficult decision. On one hand, mirror trading is a preferred method for those who would prefer to follow the tested methods of experienced traders.
As with all kinds of trading, there is a lot to be learned in the forex market. In order to improve ones trading, it is helpful to be aware of a few of the frequent mistakes traders often make when trading in the forex market.
Trend lines are fairly graphical representations of Forex price behavior that guide Forex traders’ decisions to buy, sell or even issue a stop order in trading. Rooted in the Dow Theory, market prices always indicate a ‘trend’ after discounting several factors such as the political environment that affect it.
We have charts, prices, bids and asks, but we also have a lot of confusion and chaos in the markets. It is difficult to create a meaningful forex strategy from the raw data; in fact, it’s difficult to do anything with the raw data since it is just a huge list of time periods and prices.
Trading money in the foreign currency exchange market is becoming increasingly popular, and many traders are turning to mirror trading for assistance. Mirror trading is a technique that allows traders the ability to mirror more experienced traders and to utilize their strategies. Mirror trading, not surprisingly, is popular because it is a simple approach to forex trading.
Followers of financial news will notice that the markets react with great volatility to certain types of data. A surprise in an important piece of financial release can cause sharp swings of a couple hundred pips in a short time, constituting an impossible situation for the trader who wants to trade the markets on the basis of technical or fundamental analysis.
Dow Theory is considered one of the foremost authorities in the study of basic market philosophy. In fact, technical analysis as we know it, finds its origin in the theory that was formulated from a series of Wall Street Journal editorials authored by Charles H. Dow from 1900 till 1902 and articulated by his followers and associates such as Robert Rhea (The Dow Theory, 1932).
Charts are the most fundamental aspect upon which the world of technical analysis is based. There are several ways to display price charts. However, the selection of the specific chart depends on the analyst in question, and his or her preference as to which chart provides the best signal at the earliest stage.