Everything is difficult before it becomes easy. With the current volatility of the financial markets, it is extremely important that each of us resolve to be patient in our decisions and not make snap judgments. These can create future disaster. The most successful individuals around the world have a foundation of processes that they utilize consistently, no matter whether the markets are trending with clear direction or being extremely volatile. Each of us needs to be patient and allow the

The grass is always greener on the other side of the fence, yet we still need to cut, weed and water it. There are many aspects of today's society that can cause each of us to not be able to enjoy our successes because we are told to expect more even when we do surpass a target. Sometimes we reach new heights and then beat ourselves up because we could have done better. A trader can become very depressed if they only focus on what they could have made if they would have stayed in longer or

Over a trillion dollars per day is exchanged on the foreign currency market. The Forex market is used by smart traders for speculation, hedging and long-term profit taking. You can trade in the foreign currency market. It is available to anyone and everyone. Take our Forex Essentials course and follow our analysis to get started in this exciting market. Overview: Learning the Forex with us There are a couple things you need to know about this course and our educational philosophy. We believe

Charting imitates life: Price Patterns and Road Trips Road trips are some of our favorite vacations. You jump in the car, head out on the open highway and soak in all of the scenery that you miss when you fly somewhere. Of course, every once in a while you have to interrupt your cruising to take a pit stop---to put some gas in your car and buy some snacks. Pit stops are part of the adventure. And let's face it, driving would get pretty old after a while if you didn't stop and take a break

Watch for red brake-lights Price patterns are a lot like the brake lights on the cars around you when you are driving in traffic. When you see the brake lights come on in the car in front of you, you know that the car is slowing down and that you need to slow down too unless you want to crash into it. What you don't know is whether the car is going to accelerate and continue moving in the same direction after it slows down, or if the car is going to come to a complete stop and change

No, it's not a type of pasta Fibonacci analysis is a great way to improve your analytical skills when trying to identify support and resistance levels. Fibonacci analysis is based on the Fibonacci series of numbers. These numbers have been developed and explored by mathematicians for centuries and are named after Leonardo of Pisa (Fibonacci) who did a lot of work to popularize them in 13th century Italy. The number series starts with 0 and 0 and then is continued by summing the previous two

You gotta love the trend Buyers and sellers are in a constant tug-o-war in the forex market. Buyers drive the prices of currency pairs higher, and sellers drive the prices of currency pairs lower. If you want to be profitable in your forex investments when buyers are in control, you need to follow the trend and be a buyer too. If you want to be profitable in your forex investments when sellers are in control, you need to follow the trend and be a seller too. Seems pretty easy, right?

Don't get overwhelmed. Stick with technicals and you'll learn This is a subject we are quite passionate about at PFX. Charting is the core of the analysis done by a technician. Reading and analyzing charts is something that you get better at with time and experience. But if it's not harnessed correctly, it can also become almost hypnotizing and lead to “ticker-itus,” a dangerous condition that borders on obsession as a trader spends more and more time staring at charts and indicators and less

You can trade through a Forex Futures account or a Spot Forex Account You will see a lot of marketing materials out there explaining why the spot market is so much better and cheaper than the currency futures market, but how much of it is fact and how much is hype? What are the real differences between these two closely related markets? Is it really cheaper to trade spot forex? Aren’t there also advantages to trading futures? This is an important topic because so many of the differences are

Focus on consistent, long-term growth. The Forex is not a get-rich quick market. At PFX, we are known for advocating longer-term trading strategies over shor-term trading. In this section we will explain why we feel that way and help you understand some of the advantages of long-term trading over short-term trading. To be clear, while we feel that long-term trading is advantageous over short-term trading (Especially for new traders), we understand that many traders enjoy operating in the very

Understanding risk in the forex When you buy a currency, it's different than buying a stock. When you buy shares of a stock, the maximum amount you can lose is the face value of your investment. You buy 100 shares of a stock at $10 per share, and your maximum loss is capped at $1,000. When you buy a currency contract, you are speculating on the value of one currency compared to another. The risk is therefore unlimited, as theoretically, the value of a currency can fall against another

Forex trading accounts have interest considerations "Interest," "roll-over," "tomorrow-next," and "cost of carry" are all terms used by dealers to describe the premium paid or charged on each forex pair. Each pair has an interest payment and charge associated with holding the position long or short. On some pairs, a payment may be made if you are in a long position, and a charge is made if you are short the pair. But on other pairs, an interest payment may be made if you are short and a charge

Classifying the forex as an investment type If you are interested in higher yields and can tolerate high risk there are bonds and small cap stocks that fit that description neatly. If you are interested in technology companies or environmentally “green” companies there are convenient ways to find equities or private investments that fit those categories. Putting forex pairs into categories in a like manner is much more difficult. Currencies reflect the performance and policies of entire

This is a topic most traders are passionate about. Because the retail forex market is dominated by short- and medium-term traders, most forex dealers have a focus on quality and ease of execution to cater to that trading style. But there are still significant differences between dealers and you need to understand these in order to pick a preferred dealer. In this section, we will discuss the internal characteristics, as well as well as the external benefits you should look for in choosing a

The forex market has many players, large and small As discussed before, like most markets, the forex essentially works because many participants are buying and selling a fairly uniform product. Currency contracts at the retail level are most often denominated in 100,000 or 10,000 units of the base currency in the pair. There are many dealers who will break a lot into units smaller than that, but a full-size 100K or mini-size 10K lot is the most common. Forex dealers can be classified as

Supply and demand drives the forex market The Forex market, just like every other market in the world, is driven by supply and demand. In fact, understanding the concept of supply and demand is so important in the Forex market that we are going to take a step back into Economics 101 for a moment to make sure we’re all on the same page. Having a good grasp on supply and demand will make all of the difference in your Forex investing career because it will give you the ability to sift through the

The Forex market is the largest financial market in the world. More than $3 trillion in foreign currencies trade back and forth every day. Forex stands for the FOReign EXchange—the financial exchange on which governments, banks, international corporations, hedge funds and individual investors exchange foreign currencies. How does the forex work? When you fly to another country, one of the first things you do when you get off the plane is look for a place you can exchange your U.S. dollars for

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From the previous article we know that market can be flat or trending. From the examples, we have got some idea how any of those markets looks like, but all those examples been shown as trend or consolidation already happened and big possibility that market is going to do something else. Question is : how to get into the trending market from the beginning or start trading in the range? In this article I am going to show how to draw support and resistance lines and trend lines and those lines

Now I would like to talk about time. Timing in the market has big impact for the trading account, but so big as choosing the right direction. But even choosing the right direction after some time market will turn around and if you miss right time to get out, all the profits will go away. Based on previous sentence looks like timing is everything. I still think it is not. By my opinion it is better wrong timing than wrong direction. So why I would like to spend all article just talking about