Leverage essentially means having the ability to control a large sum of capital using very little of your own funds and borrowing the rest. When you buy a house on credit i.e. a mortgage, for example, you are actually trading with leverage. Say you put a 25% down payment of $50,000 on a house worth $200,000, you are effectively using leverage here!
There are some things that knock you for six when you hear them, and this is generally the case when one first encounters the foreign exchange markets, or 'forex' for short. Followed by the credit (debt) market (think US government bonds, notes and bills here), forex is the largest, most liquid market on the planet - an immense auction house which has a daily turnover of $5.1 trillion (according to the 2016 Triennial Central Bank Survey of FX and over-the-counter (OTC) derivatives markets). Forex is a globally decentralized marketplace, which simply means that there's no central exchange or physical location. It Operates around the clock five days a week, with the action beginning in Wellington, New Zealand and closing on Friday evening in New York, essentially allowing one to pick and choose when to trade.
While it is true that the forex market is open 24hrs a day five days a week, it doesn't mean that it's always active. Breaking down this 24hr auction house into manageable trading sessions is important. Knowing when liquidity is likely to come into the market and when it is expected to diminish, helps one determine the best time to trade.
At times, the excitement during executions can bring about many emotions. One of these is the feeling of nervousness. Whether new or highly skilled, there will always be moments when traders experience forex trading jitters. In an active and volatile forex market, it is normal to feel anxious about trading activities like entering and closing a trade or planning out the best strategy. Because of this, it is important to properly manage nervous energy to channel more productivity when trading. With enough planning and practice, learn how to easily overcome forex trading jitters for optimal forex trading.
As humans, we tend to perform our best when we have a well laid out routine. Chaos is something that most of us by human nature tend to avoid at best. With trading, having a routine brings with it a certain level of discipline which helps you to improve your performance as a trader. Having a trading routine helps you follow a trading process and at the same time will help you to avoid taking impulsive trading decisions, be it entering or exiting a trade prematurely. Professional traders, whether they trade currencies or bonds, or stocks follow a routine.
An optimal mindset is key to achieving efficient and enjoyable trades. With a volatile forex market, traders need a reliable mindset to manage all trading activities. By obtaining a strong and optimistic mental attitude, you can properly accomplish trades and vital tasks for success. Applying the right mindset allows a focused way of thinking that can minimize anxiety and reduce the chances of emotional trading. To have a healthy outlook towards the forex market, practice the best mindsets for optimal forex trading.
In this day and age, becoming an independent financial trader is easy. You just need some capital and a brokerage account, and voilà, you're a trader! The only problem is, trading the markets is not quite so straightforward!
Pivot points are extremely popular with traders, they are used to spot direction, probable reversal points and potential support and resistance levels. It's a well-known tool that is of particular interest to novice traders, due to the simplicity of the mathematical formulas it incorporates.
How a centuries-old mathematical sequence can help traders identify entry or exit points in modern markets.
What if I told you there is a mathematical...
- Forex Expos
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