Forex Library

High risks are the main obstacle on the way to getting rich through forex trading. The currency market is very unstable, the number of factors that affect it are quite high, and by no means can all of them be predicted. For 100 years of existence of various exchanges, beginning with commodity exchanges and ending with stock or currency exchanges, no one has been able to bridle that market environment. Volumes of books have been written, hundreds of experts and gurus have come and gone, lucky individuals have earned millions and written books, but no one has been able, so far, to come up with the general scheme of successful work, with a victory matrix. The exact complexity of analytical work and unpredictability of the organism called "global currency market" devastates 95 of 100 players who dared to fight this ocean of opportunities and threats. It is necessary to consider that professional work in forex trading is very demanding psychologically, since your accurate calculation and seeming 100% successful deal can instantly turn into a loss because of reasons that do not depend on you. Not quite every mind is able to accept the fatality of defeats. It is not enough just to be smart, one needs to separate himself for work.

Regardless of age and experience, the invariable feature of each trader is the desire for self-education. It is not enough to make short-term achievements on the currency market, but it is important to prove the resiliency and profitability of its strategy during a lengthy period of time. It is impossible to travel on that complex road without knowledge that accumulates in the process of studying and analyzing the materials dedicated to the international currency market.


Materials for studying

Retrospective of Currency Market. Margin trading is the foundational principle of the foreign exchange currency market. The notion of margin trading is reduced to carrying out financial operations at forex with the use of leverage. In this regard, the deposit that is on the trader's account plays as a pledge (margin). In case of an unsuccessful transaction the forex broker, who carried out certain financial operations on behalf of the trader and on his instruction, will suffer losses. In order to compensate for them, a deposit is needed; it is also called deposit insurance. Losses can't exceed the amount of deposit insurance; therefore, broker companies always control the situation, and if the levels of losses on the account reach a certain amount, the transaction will be closed without the trader's participation. You need to remember that when opening positions, don't use all the available amount of money on the account when making currency contracts.

Articles about Trading. The choice of investment tools in the modern world is extremely high - they can be equally represented by company stocks, bonds, bank deposits, impersonal accounts in precious metals, options, or mutual investment funds. Types of investments differ in two main interconnected criteria: risk and profitability. Moreover, the higher the profitability is, the higher the risks will be, which is natural. In the midst of this investment splendor, forex trading occupies the honorable place of the most risky and most profitable tool. A bank deposit will give you a maximum 5-7% (if we speak about serious amounts), investments in mutual investment funds - 20-5-% (in case of a very good outcome). Forex trading potential is much higher; here, we are speaking about 100% of annual income and even higher. It is clear that no legal business is able to produce such a percentage, nor will any conservative financial tool do it.

What do you begin trading with? One of the main secrets of successful forex trading is complying with the rules of capital management. The trader must always realize the high importance of this aspect. Skills that help take care of your trading deposit always produce positive results. What is the essence of financial management? First, it's limiting the level of risks. This is achievable by way of placing stop orders, as well as operation in the framework of percentage ratio of transactions. For example,you don't need to open positions in one market direction with more than 5% of trading deposit. However, many professionals limit their rules even more. Everything depends on the size of capital and the planned level of profit. In this respect, it is important to remember that the forex market has many directions that allow it to make profit. By no means does every trading system suit a specific type of trading or a certain currency pair. It is always advisable to combine the operating capacity of the personal tool and the market, where a specific operation is carried out. This is because one method will work on a quiet market and the other will be the most effective in case of strong jumps and movements.

Trading Indicators. What is the secret of successful trading on the forex market? It is a very complex question that has an endless number of answers. Every currency market specialist is ready to list several reasons for the positive balance on the account. Some traders place an emphasis on indicators, and others focus on skillful capital management. It is very important to follow the proportion of trading tools that will help you to be successful. However, it is necessary to know the main components of successful trading for that reason. And both the "recipe" and proportions will have to be selected personally. In any case, the use of trading indicators is an indispensable tool that allows the trader not only to optimize the system of risks but, in general, increase the effectiveness of their trading system.

Schedule of Trading Sessions. Forex is a global financial market, where currency sales and purchases are carried out around the clock. Nevertheless, it is important to consider that the character of trading for each currency pair depends on the global clock, which determines traders' activity in various regions of the planet. This way, for instance, the most active and massive USD/JPY, EUR/JPY trading, as well as trading in Singapore dollar and Chinese yuan take place during the Asian session (00:00-09:00 UTC), while currency operations with JPY make only 16,5% of the daily turnover. In order to be successful in forex trading, each trader needs to consider for his system the influence of time zones on the trading activity of currency pairs selected as tools for carrying out transactions.