Currency Forex Trading Follow Your Gut or Your Broker
Which way will the forex market move? Do you just follow your gut feeling? Or do you have Neo’s sixth sense that
would let you be one with the market and feel the underlying currents of currency forex trading.
Trading forex is a non stop action movie but a good one, where you really don’t know who
will win at the end. Every forex trader is trying to predict the winner of his own movie.
What do we need to know!
The forex markets move fast. Can we understand why they move? Yes,
we can but only by having a feeling for the market, the instinct to know in which direction to move. Will our
intuition enable us to predict the forex markets every move? Of course not. But understanding what makes the
markets move will give the edge in making better trades.
- Who trades forex?
Traders, investment funds, corporations, banks and governments.
- Why do they trade?
Traders go for a quick speculative profit. Investment funds avoid risk and follow the long term trends.
Corporations are trying to hedge on currency fluctuations. Banks are short term traders, market makers and hedgers.
Governments trade currencies to keep there countries markets stable.
Now that we know who the players are we must understand ourselves. As the other players trades will impact
greatly on our own. We need to decide on our trading strategy. There are just too many strategies to be covered in
this article so please visit Forex Value Guides to for more information.
But no matter our strategy, we must be disciplined and not let our emotions take over. That is not an easy thing
to do when the markets go wild. We need to keep calm to analyze the other players to reach our profit goal.
Don’t believe anyone who says trading is easy. You need a lot of will power not to keep changing your mind every
minute and sharp analytical skill. Not only to understand the other players but to comprehend world events that
have an impact on the markets.
What strategy should you choose? Each trader needs to develop his or her personal approach to the FOREX. Some
traders rely solely on technical analysis while others prefer fundamental analysis, but many successful FOREX
traders use a blend of both to get a broad overview of the market and for plotting entry and exit points.
There are many valid tools available to recognize market movements. The novice FOREX
trader is well advised to study each one individually for getting a working knowledge of their
concepts and use. Once one has been understood, keep on using it while studying others. Each Currency Forex Trading
method tends to reinforce the others.
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