subject: Forex Trading - The Ability to Trade When Do I Enter the Market [print this page] Forex Trading - The Ability to Trade When Do I Enter the Market
The main attractions of forex dealing especially to small private investor are the 24 hours a day, 5 days a week trading with non-stop access to global Forex dealers. The market is enormously liquid making it easy to trade in most currencies. Even in these Volatile times markets still offer tremendous profit opportunities. The forex market has the ability to make a profit in rising or falling markets. This leads to the market being highly speculative, estimated at anywhere between 70% -90% in fact. In effect, the person or broker that bought/sold the currency does not intend to actually take delivery of the currency. What they are doing is solely speculating on the movement of that currency.
Starting out in currency trading is not something that you should take lightly, hoping for automatic success. You will find that there are many different factors that need to be understood before you go live on the market and start trading in currencies. What is required, are clear forex strategies. Just under two-trillion dollars are traded through the forex market on a daily basis, which can be somewhat intimidating, but doing your homework and having the right strategies will make it much easier to be successful.
Many Forex traders are not aware of the large number of traders in the Forex market and the influence or non-influence that traders have on supply and demand. If you are trading the Pound/Dollar then you want to place your order when demand for the Pound is increasing or demand for the Dollar is increasing. When is that exactly and how do you measure it?
In Forex the largest group of traders by far, are Commercial traders. The results of their positions can be seen each week at the CFTC site under the Commitment of Traders Report. Commercial traders DO NOT try to make money from their currency transactions. They are not interested in Volatility but Stability. They are like a big ship going one direction that takes time and effort to turn. Even more than that, they resist turning. Their goal is stable prices in order to run their businesses, countries, and institutions.
The second group of traders are Non-Commercial traders who speculate. They are trying to make money in the Forex market for themselves and their clients. There is some debate as to whether this group can create a trend. It is my opinion that if conditions are right a herding affect can take place where there is a sustained demand for one currency or another and therefore a trend but these traders do not have the power to sustain a trend and maintain it on their own.
Simple Forex Software Interface
For whatever new software we learn to use, what we look for is simplicity of the user interface. Forex software is no exception. You wouldn't want to have an interface that is so complex that you feel stressed out to use it. If the software is too difficult to use, the chances of you losing money in the trading will be higher as you will definitely be confused how the software actually runs and operate, let alone making a profit for you.
ea forex system
Step By Step Clear User Guide Manual Should Be Available
It is important that for good forex software, it needs to come with a good user manual guide which you could use. Ideal software should preferable come with also a video demo to help you understand how to operate the software properly. This way, you can read the manual or see the demo during your free time in order for you to familiarize yourself with the forex software.
A Good Forex Software Must Have A Money Back Guarantee
