The movements of currencies in the Forex market will produce one of two types of directional movements on the currency charts. A currency pair can be described as:
- Ranging, when the net movement of the currency pair is neither upwards nor downwards, but sideways.
- Trending, when the currency pair has either an upward net movement (bullish) or downward net movement (bearish).
The ability of a trader to discern which of these market trends is operating in the market at any particular time is a major determinant of how the market can be played for profits.VN:F [1.9.22_1171]
It is true that Forex trading is by definition, a market that operates 24 hours a day. This is because there are various key trading zones where market activity in the Forex market is carried out, corresponding to the three major time zone financial districts. These are in London, New York and Asia. It is the activity in these zones, which come up one after the other that give the Forex market its 24-hour appellation.VN:F [1.9.22_1171]
A large part of Forex trading success has to do with the broker aspect. Now we will not talk about the regulatory aspect of broker business; we will probably do that in subsequent articles. But we will try to talk a little bit about broker pricing issues, which inevitably will lead to a discussion about brokers and how they can be classified according to the kind of price quote structure they deliver to traders.VN:F [1.9.22_1171]
Money management in Forex is one of the most important and yet most ignored topics. Too often we hear and see many trading strategies being advertised all over the place, but very little information out there on money management. Why is money management in Forex so important?
Profitable trading is not all about one or two fluke profit trades. Profitability in Forex is the ability to make Forex trading profits over time, with consistency and regularity. Forex money management is what makes the difference between a winning trader, and one who wakes up in the morning afraid to check his trading platform because he doesn’t know what to expect.VN:F [1.9.22_1171]