8 REASONS TO TRADE THE FOREIGN EXCHANGE MARKETS

8 REASONS TO TRADE THE FOREIGN EXCHANGE MARKETS

1) IT IS GLOBAL AND THE MOST LIQUID MARKET IN THE WORLD CONSTITUTING $5.3 TRILLION IN MARKET VOLUME DAILY

On any given asset class – what you should be looking for is a significant, yet considerable amount of liquidity. As mentioned above, the FX markets constitutes $5.3 trillion US Dollars traded per day – 5 days a week. Given this kind of liquidity, we have institutional reinforcement back of our trades – with off course the correct approach.

Read More

Critical Trading Times and Why

The Foreign Exchange market as we know, does not close intra-week – meaning it is virtually open 24-5. On the contrary, stock markets have a closure period (even precious metals) at 11pm, London GMT.

The beginning of the trading day starts in Asia (Tokyo) at 00:00am London time as their desks open for business – following with the Aussie traders 30 minutes later also. The Aussie and Asian session pretty much intertwine with each other as they have a very short difference in their opening hours and off course close at the same time – which is 6am London time. Even though London is the home for Foreign Exchange, our sleeping hours tend to adopt volatility on certain days. It’s simply due to the fact that the Asian and Australian investment banks/hedge funds/ commercial banks are engaging in their normal day-to-day transactions in their morning/afternoon – and we will sometimes wake up here in London to realise that AUDUSD for instance has declined 50-60 PIPs after the New York close (caused by the activity of these international firms).

Read More

What Tigers Can Teach Us About Trading

Some would say that the title of this article can come across as a unconventional way of titling the key facts which I will be presenting throughout this paper – however you will see how Tigers can teach us something very important when it comes to our trading. This article will be very beneficial for newbies, and the ones that have relevant trading experience will acknowledge that they are no different to a Tiger when it comes to trading! The winners in this field usually have very similar traits, they are applying their skill-set and market knowledge on each financial instrument and making a decisive decision as to which direction they feel as though price is headed.

Read More

Never Allow Your Personal Life To Impact Your Trading Life

This by far is one of the most important things to avoid in one’s trading career – especially if you are a novice just starting out.  Quite a lot of people online have various perspectives towards trading the financial markets; some view it as gambling and risky (which are the uneducated). However for the rest of us who are educated and successful, we all know that we have to be in the right frame of mind mentally in order to become a long-term successful trader – most crucially, in order to avoid attaching emotions to your trades. I cannot stress enough on how vital it is to put all emotions and personal life issues aside when approaching the markets – as it has detrimental subconscious impacts on your trading in the short and long term.


Read More

Why Shifting Your Habits Will Improve Your Trading

This is quite a crucial topic in which I thought I would share with you guys. It is extremely crucial to ensure your negative habits does not affect your trading, emotionally and financially. There are 4 main habits that I urge anyone that is new to the trading world to immediately adopt and those are…

Read More

10 THINGS TO KNOW BEFORE TRADING WITH REAL MONEY

1) TREAT YOUR TRADING ACCOUNT LIKE A START UP BUSINESS!!!

How you would treat your trading account and how you would treat your growing business is pretty synonymous. You have to analyse daily, weekly, monthly and quarterly performance – you also have to be persistent in order to create the growth you desire. Most crucially, you have to be able to understand risk – whilst ensuring your only risking a minimal of your portfolio.

 

Read More

How Investment Banks Make Their Money

 

There were a lot of people who requested for this answer from a few e-mails I have been receiving, so I figured I will conduct an article which explains it. Investment banks have numerous methods in which they receive revenue. Just to inform you, the major investment banks are JP Morgan, Goldman Sachs, Meryll Lynch and Morgan Stanley. These investment banks have proven to be government backed, due to the size of the company’s operations and the how their overall performance impact our economy. An Investment Bank is exactly how it sounds. They handle other corporations, hedge funds, governments and individual investor’s funds, and also give them investment advice. Primarily, they have a number of top shareholders that invest huge sums of capital to the investment bank with expectations of the company’s stock to rise in the future, which will yield the investor a profit. These banks have traders and investments managers within its firm for various other methods of other financial gain.

Read More

The Difference Between Money and Currency (Our Monetary System Explained)

Throughout this article I will be referring to what we call “money” in today’s society as currency as this is exactly what it is, not money. The money that we use for exchange for goods and services in today’s society is just a worthless piece of paper (or plastic if you want to include GBP plastic £5 and £10 notes).
Our paper currency we use today is commonly entitled as fiat currency. The word ‘fiat’ is latin for ‘’let it be done’’. Most of you that are reading this will think I’ve lost my mind in saying this, and may find my previous statement absurd. However, I will thoroughly explain the reasoning for my statement throughout this article. Be sure to absorb all information in this article until you have understood it because if enough people can understand this system that we are living in, it can surely change our worlds monetary system.

Read More

The Difference Between Trading and Gambling

I am sure that this is the topic that the majority of people would be interested in reading, as there are a number of individuals who still  class financial trading as ‘gambling’. I can understand why people refer to trading as gambling due to the small similarities they both have such as a stake size, however they are both completely different.

Read More