France is a key participant in the European Union and understanding the significance of the country's economic data can give traders an edge with the euro.
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.
This article contains general information and does not represent trading advice.