Often, risk in investment markets is defined in terms of cash. However, risk in a trading plan is not limited to just losing money. Another way to define risk is in terms of opportunity risks. Entering a particular trade means …
The forex market is often characterized as the most liquid financial market of all. Liquidity refers to the number of active traders and the overall volume of trading present in a particular market at at any given time. Liquidity is …
The Ichimoku charts, another form of technical analysis, have made their way from Japan. Having grown in popularity, they are often called “cloud charts” because of the central characteristic of the system- a cloud. The cloud is the space between …
Recognizing trends in the forex market is key to any currency trader’s strategy. If the trade is made in the position of the direction of the prevailing trend, a profitable trade is likely. In the forex market, trends can be …
Analyzing charts is at the core of technical analysis for forex market traders. The charts can be quite detailed but a much simpler analysis often will suffice. There are two main types of charts: bar charts and candlestick charts. Bar …
Long-term macroeconomic trading is the big leagues of forex trading. It involves holding positions for weeks, months and perhaps even years at a time. Therefore, it is traditionally used for hedge funds and other institutions. There are a variety of …
Short-term, high-frequency day trading is but a blink in the forex market. However, medium-term directional trading isn’t much longer. For medium-term traders, a position is usually held for periods of a few hours to a day or two. Just as …
Short-term trading in the forex market functions much like short-term trading in most other markets. However, the designation “short-term” in the forex market takes on an entirely new meaning. Short-term trading with currencies typically means holding a position for only …
Most of the forex market trading occurs with the major currency pairs. There are three minor currency pairs, also known as small dollar pairs, which complete the pairs featuring the U.S. dollar. Together, the minor currency pairs are commonly designated …