Archive for February, 2010
February 11th, 2010 | 
Author: Top Ten mistrakes commited by Forex Traders
It is a well-known fact that ninety five percent of forex traders suffer big losses in the market while the remaining five percent make millions of dollars every day. The major reasons for failure among forex traders is that,
- Looking for a quick Buck:
Some traders have a wrong idea that they can become millionaire overnight and bet big amounts without analyzing the present market situation which leads to losses. It is always necessary to analyze the present market situation using indicators in order to achieve consistent results. It requires discipline, self-control and patience in order to achieve success in trading.
2. Searching for Best Trading System:
There are many traders who keep looking for the best trading system and best time to trade. While thy keep looking for this Holy Grail, they fail miserably as there is no such thing available. The forex market is highly fluctuating and changes every now and then. So, it is the duty of users to plan the things accordingly.
3. Inadequate Forex Education:
Another reason for failure of some traders is the lack of knowledge about the forex market They fail miserably because they do not have proper education about the market trends, strategies, setting stop loss, using indicators and tools for analyzing market situation etc. It is always necessary to seek help from experienced forex traders or get educated from an experienced forex coach before starting to trade.
4. Lack of Self-control and Discipline:
Timing, self-control and discipline are crucial factors in forex trading and they determine the success of the trader in his day to day trading activities.
5. Lack of Endurance and Patience: Read the rest of this entry »
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Forex Trading Versus Future Trading – Which is Best?
There are different financial markets which can generate good returns on investment rather than depositing the money in banks. Some financial markets like money market or bond market will not give returns in double digits. However, some other markets like Forex and future trading markets will return gain in double digits.
The Forex market and future market are very profitable markets and yield good returns. But there are some significant differences between the two which are discussed here.
HIGH LIQUIDITY:
Forex market is the one with highest liquidity than any other financial market including futures trading. The forex market has a daily turnover of around 2 Trillion dollars while the future trading has an average volume of 30 billion. The liquidity in forex trading is definitely much higher than futures market. Forex trades will be filled faster than futures market and the potential profit is high. Also, the trade execution is instantaneous in forex and we could make plenty of trades very quickly.
24/7 TRADING:
Another great advantage of forex trading when considering future trading is that, forex market is open 24/7. The forex market is open for longer time than any other market. If a person wants to trade and make more money, then it would be great if the market is open for unlimited time and this is satisfied by forex market. Whenever certain events occur, it is best to take complete advantage of the present situations and we should not wait for the market to get open in morning. We can trade instantaneously by using a personal computer through online forex trading.
FAST EXECUTION OF TRADES: Read the rest of this entry »