I'm here to share with you the facts about smart forex trading. In this business 95% of traders are breaking even or losing money.
That doesn't make things look good. The 5% making money are the ones making real big money. As a trader you have to accept this and have a desire to transform into this small minority of profit makers.
That doesn't make things look good. The 5% making money are the ones making real big money. As a trader you have to accept this and have a desire to transform into this small minority of profit makers.
Short term trading really seems good. It's nice to get your money in and your profits out very quickly. This being good, doesn't make it a viable strategy.
Usually short term, there is profits to be made, but typically if you want to make a good return you have to at least give sometime to the trade. I think the best thing you can do is have a balance. Mix up your trades, so you're not all long term or short term. Have a little of both worlds and you'll be doing fine.
Usually short term, there is profits to be made, but typically if you want to make a good return you have to at least give sometime to the trade. I think the best thing you can do is have a balance. Mix up your trades, so you're not all long term or short term. Have a little of both worlds and you'll be doing fine.
The next thing you should understand is that each currency is regulated by a central bank. In the United States it is the Federal Reserve. The main goal of this bank is to control the supply of money, so that it follows that of demand.
This is the way you keep currency balanced as an economy grows. The problem that arises is that this is hard. There is no mathematical formula that tells this bank what exactly the economy needs. It's just too big and too complex to figure out.
This means they're sort of "guesstimating". Every time they change the interest rates, they change the supply of money. When the supply changes, the price changes.
Being aware of these changes can protect you from financial loss, but it also gives you an advantage due to the anticipation of what will happen in the market.
This is the way you keep currency balanced as an economy grows. The problem that arises is that this is hard. There is no mathematical formula that tells this bank what exactly the economy needs. It's just too big and too complex to figure out.
This means they're sort of "guesstimating". Every time they change the interest rates, they change the supply of money. When the supply changes, the price changes.
Being aware of these changes can protect you from financial loss, but it also gives you an advantage due to the anticipation of what will happen in the market.
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