There are many ventures in life where keeping it simple is all that is needed to succeed. Forex trading is one of them. Too many times, Forex traders go searching for Forex systems and Holy Grail signals that employ all manners of indicators without paying attention to some of the price levels in a currency pair that define risk. Currency movements do not move in a straight line like we see in the straight-line graphs of Mathematics. Rather, movements tend to be in a convoluted manner, with prices advancing, retreating and perhaps advancing again or retreating further. Even when there is a clearly defined trend, there are moments when the price action will surely take a breather as traders take profits or some event occurs to re-define market sentiment.VN:F [1.9.22_1171]
If you are a regular poster or visitor to an online Forex trading forum, you will most certainly see this question asked three times out of 10: “is my broker a scam broker”?
Many of these online forums are littered with one tale of woe or another about Forex brokers. But are all bad experiences in Forex attributable to Forex brokers? When you consider that 96% of all individual Forex traders fail at Forex trading, surely this cannot all be attributed to some Forex broker scam activity. We, therefore, have to distinguish between activities due to scam brokers, and bad trading practices by traders.VN:F [1.9.22_1171]
One of the best ways to secure a good Forex broker is by visiting online Forex review sites or Forex forums and using the filtering process some of these sites have for assessing Forex brokers. Some of the points used in the review process are:
- A ratings system. The rating system takes into account several issues, which include ease of funding, prompt attention to customer requests, fulfillment of withdrawals, the trading experience on the trading platform as well as the presence or otherwise of unfavorable trading conditions such as the platform freezes, slippages.
- Individual reviews from Forex traders who have actually used the services of each broker.
The crisis in the Eurozone can actually be traced back to the 2008 global financial crisis. Back then, the eyes of the world were mostly on the US and the UK, as these two economies seemed to be the worst hit. It took two more years for the situation in the Eurozone to begin to unravel.
First, Greece’s sovereign debt crisis became market news in April 2010 and kept the markets busy for most of 2010. Then Ireland came on board, and the shockwaves of what was playing out hit the Euro pretty badly. Look at the chart for the EURUSD in November 2010 as investors panicked and offloaded their Euro holdings in a hurry.VN:F [1.9.22_1171]
In the first part of “trending and ranging markets”, we defined and identified what trending and ranging markets were. In this blog post, we shall elaborate further on how to identify each type of market, using some tools and indicators at our disposal.
Before we go on to talk about how to identify trends, let us mention a point that is often neglected. What is the best time frame to use to determine a trend?VN:F [1.9.22_1171]