Forex Basics
The foreign exchange market as we know it today originated in 1973. Before that, it was mere exchange of major currencies with relatively stable fluctuations and little speculations. Between 1971 and 1993 and through several international agreements and accords, attempts were made to establish economic stability around the world, separate Europe dependency on the US dollar, pegging currencies to other than the US dollar, and eventually obtain limited fluctuations, and they all failed, leading us to the free-floating system of the forex market as we know it today. —> READ MORE
Profit/Loss Calculation
Making profits in trading is all about expectations and speculations for prices. The main concept is to buy a product hoping to sell it on a higher price or vice versa, so that the difference is your profits. Sometimes the market may go against your trades, thus the result would be losses. As an investor, your net realized profits will be the total profit your order has made minus your broker’s spreads, commissions, and/ or any other deductions. —> READ MORE
Technical Analysis
When day trading, a trader makes the decision about what to trade, when to trade, and how to trade, using either fundamental or technical analysis. Both forms of analysis involve looking at the available information and making a decision about the future price of the market being traded, but the information that is used is completely different. Is it possible to use both fundamental and technical analysis together, but it is more common for a trader to choose one or the other. —> READ MORE
Support and Resistance
When the price pattern on the chart is making its way up and pulls back, the highest point reached before it pulls back down is called resistance. As the market climbs back up again, the lowest point reached is now called support. So resistance and support are constantly formed as the market fluctuates. —> READ MORE
Trading the News
A county’s economic state will without doubt have an impact on the value of its currency, as a currency is a proxy for the country it represents, and therefore the economic health of that country is priced into the currency. One very important way to measure the health of an economy is through economic indicators. That’s why we closely watch these data, such as unemployment, gross domestic product (GDP), political stability, changes in interest rates, inflation etc… as they can all play a role in the value of a country’s currency. —> READ MORE