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Price movement arises mainly out of imbalance between sellers and buyers. The true supply demand mechanism drives prices in the forex market. Being so liquid, the forex market cannot be manipulated. In other words price rigging is not possible even by large players such as banks which contribute...

It is always better to use a single strategy which encompasses all the requirements of a reasonably safe trade. As long as a strategy has mechanism to identify entry, stop loss, target and exit price there is no need to create an alternative. The strategy should also result in a reasonable draw...

Leverage is a double-edged sword. It will increase the profit and loss exponentially. So, wise use of leverage is always called for. Professionals suggest a leverage of not more than 1:100. Also, it is advisable to use only 1/4th of the capital per trade and no more than that. High leverage...

The kind of analysis directly depends on the trading strategy. An intraday and swing trader should opt for technical analysis where as a medium and long-term trader should opt for fundamental analysis which will enable them to catch primary trend. Dow theory which is used for fundamental...

Stop loss and take profit facility should never be avoided by a beginner. Stop loss price prevent capital erosion while take profit price prevents the trader from falling to greed. It takes a lot of time to identify perfect stop loss and take profit points. Only experience will enable the trader...

A perfect trader will have at least 6 months of successful trading track record with data indicating a low draw down and high return on investment. The trader would have never received a margin call. Also, the trader would have never used more than 1/4th of capital in any trade. These are well...

The basic requirement to enter forex market is a computer and an internet connection. Other than that, basic knowledge of English is very much preferred so that it is easy to download study materials from the internet and go through them. Apart from this, only experience, patience, control of...

News based trading is very much useful for traders who have at least a few months of experience. It is better for a beginner to avoid news based trading. This is because currency correlation is a must know for success in trading news. It will take some months to understand the relation between...

We can go against the trend only in the final stages of an uptrend or a down trend. If otherwise, it will be suicidal. We will lose our account in no time. Contra thinking is good when calculated decisions or made. It is suited for professionals who by virtue of experience sense the possibility...

The word forex is an abbreviation for foreign exchange. It is one of most liquid markets in the world. Even though unregulated and decentralized, this market offers unmatched money making opportunity to a ordinary retail investor. A trader can choose his own work timings while trading from the...

It is not that easy to make substantial income by investing only $100 in stocks. On the other hand, it is better to learn forex trading and invest that amount. In case forum bonus is used, you may not need investment at all. I started only with around $115 earned through forum bonus and in less...

Similar to stock market, forex market may have criminal players. Only respective governments should take necessary measures to put those persons behind bars. Forex market cannot be blamed for the same. It is similar to stock market where there were instances of investment from underground world...

Most of the robots perform exceedingly well in the initial stages. However, as time goes on the performance fades. This is because market is dynamic and evolving. Even the best of the strategies need fine tuning then and there. Unless and until the developer of the robot backs up with tweaking...

It is the ability to cut down losses and ride on profits that separate a professional and beginner. A professional does not wait for trend to turn in his favor where as a beginner usually waits endlessly until the account receives a margin call. Also, a professional will remain calm irrespective...

I am not sure how far a tutor can shape a beginner aspiring to become a trader. If we are looking for entry knowledge then a course may be of some help. Having said that I also wish to add that there are plenty of websites that offer tremendous guidance to newcomers. This is apart from the...

Only if it is a dire necessity, it is advisable to trade with two brokers. If a broker is selected after careful analysis then there is no need to think of another broker. Irrespective of the number of brokers with whom we have an account, it is advisable always to withdraw some portion of...

It all depends on the trading style. Most traders begin to make a bounty using news and wide spreads will hamper their idea. So, a fixed spread is preferred. On the other hand, a trader who does balanced number of trades during calm period and also during news time will find very little...

Before taking forex trading as a full time job, the following criteria should be met. The trader should have enough money to manage his expenses for the next few months. Also, only surplus money should have been invested. The trader should also have at least 6 month track record of successful...

Forex trading is a chapter in finance. So there is no need to include the same in school syllabus. Trading requires very good fundamental and technical knowledge. Only a degree holder can clearly understand the logic behind price movement. Also, only a mature person can understand the...

There is no denying the fact that speculation is a business of probability. However, smartness lies in tilting the odds in a traders favor. That is what trading strategy is all about. Forex market being extremely volatile confuses even the best brains. The trading strategy should be created in...