The active trading of financial instruments affords both opportunity and peril to any individual willing to take the challenge. The achievement of long-term success in the trading arena can be elusive, with a majority of entrants eventually returning to their day jobs. Statistics show that aspiring traders face an uphill battle, with only 1 in 100 eventually becoming predictably profitable, according to Business Insider. In spite of the odds, individuals are drawn to the markets in hopes of achieving financial independence and finding new income opportunities.
Understanding the psychological component to trading is a key aspect of developing competency in the marketplace. Effectively managing emotions such as fear and greed can eliminate many pitfalls related to haphazard trading, and increase the trader's probability of success.
Some types of traders rely more on technology to create an edge in the marketplace. High-frequency trading (HFT) attempts to capitalize upon market fluctuations at near light speeds. The practice of HFT is controversial. Some believe it should be banned, while others contend it is a positive force within the world's markets.
Success in the field of active trading is often seen to be fleeting and temporary. However, prosperous traders cite achievement as being the product of consistency, self-awareness and valid strategy. Concepts such as risk-on and risk-off trading, in addition to the proper use of a stop-loss, can prove to be instrumental parts of a comprehensive trading plan.
For active currency traders, market volatility presents a vast array of opportunities and challenges. Fluctuations in the exchange rates of forex pairs can occur rapidly and seemingly out of nowhere.…
Direct market access (DMA) is an unencumbered connection between the trader and market or exchange. DMA enables participants to reduce trade-related latencies and build strategies based upon information available in…
Learn the ins and outs of the PEG ratio, including how to calculate it and include it as part of your strategy, at FXCM Insights.
The financial markets are now online and ready for anyone with capital, dedication and an entrepreneurial spirit. Forex, futures and equities offer considerable earning potential.
The best time to trade equities, currencies and futures is unique to each product. Periods of enhanced market participation often create optimal liquidity and volatility.
Trading forex for profit is a challenging activity, but by adopting practices to increase their efficiency and lower risk traders can make it an easier and less trying endeavour.
What Is Forex Arbitrage? Forex arbitrage is defined as "the simultaneous purchase and sale of the same, or essentially similar, security in two different markets for advantageously different prices," according…
Latency directly influences the amount of time it takes for a trader to interact with the market.
One of the ways in which a trader can learn from past success and failure is through keeping a trading journal. A trading journal is a comprehensive record of data…
Leverage can provide substantial opportunity for forex traders, but it can also present them with a significant amount of risk.
To understand how much can be made on a given trade, a trader needs to calculate how much a pip will be worth for a given currency pair. Calculating the…
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