Liquidity and Trading Sessions: Is There a Best Time to Trade?

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While it is true the foreign exchange (forex or FX for short) market is open 24 hours a day, five days a week, it is not constantly active. Breaking down the currency market into manageable chunks is important. Understanding when liquidity is likely to enter the market helps traders determine the optimal time to trade. … Continue reading Liquidity and Trading Sessions: Is There a Best Time to Trade?

Combatting the Dreaded Analysis Paralysis

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Common among newer traders, the temptation to incorporate as many trading indicators as possible is appealing. The rationale behind this approach is simple: if most of the technical studies reach a similar conclusion, buy or sell in the direction of consensus. While this may appear a reasonable technique, it encourages a phase known as analysis … Continue reading Combatting the Dreaded Analysis Paralysis

Understanding Risk/Reward Ratio in the Foreign Exchange Market

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Should a colleague, one who has a reputation of borrowing money and returning it later than proposed, ask to borrow $100 and offer to pay back $110 the following month, what would your initial thought be? It’s probably not worth the risk or the hassle, right? However, what if the said colleague offered to repay … Continue reading Understanding Risk/Reward Ratio in the Foreign Exchange Market

Position sizing – where SIZE really does matter!

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‘Risk comes from not knowing what you’re doing’ – Warren Buffet. Foreign exchange (forex or FX) trading, once the domain of commercial banks, hedge funds, large corporations and high net worth individuals, is now available to anyone with an internet connection and sufficient funds to meet balance requirements. Although a low barrier to entry, a number … Continue reading Position sizing – where SIZE really does matter!

The importance of an Economic Calendar

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Have you ever had one of those trading setups that boasted a staggering amount of confluence fail in dramatic fashion? You know the kind of setups that wouldn’t look out of place as wallpaper on your mobile phone! Of course you have. We all have! One reason the area may have fell flat could have … Continue reading The importance of an Economic Calendar