Forex trading involves exchanging one currency for another in the forex market. In general, trading currencies is a risk-taking endeavor that has more in common with gambling than with investing. If you are just starting out in the forex market, your best bet would be to outline and then test a risk

You are intrigued by the Forex market and want to try your hand at trading. One of the first things you must decide is what kind of trader you want to be. Do you like trading in a 9 to 5 environment where you do not get text messages or calls about stop-loss orders in the middle of the night? Then,

High-frequency trading (HFT) seems to be a hot topic both in the financial trading community and among common laymen who are concerned with the consequences of such trading practice. Italy passing a tax on HFT transactions and the calls from the general public to restrict HFT signal about a rather c

Market sentiment is an overall attitude of investors toward a specific security or the financial market at large. Market sentiment is a squishy term referring to tone and feeling. In the broadest context, it is crowd psychology, and crowds, like individuals, can possess a wide range of emotions beyo

Macroeconomic Reports It is easier to discuss how macroeconomic data affects the currency market than “news,” which casts a wide net. First, traders must distinguish between what is “macroeconomic” and what is “microeconomic” data. Macroeconomics is concerned with trends in the economy as a whole, w

Interest rates — and relative interest rates between countries, and expectations for changes in interest rates — are the single most important factor in trading Forex. All fundamental data in Forex should be viewed with one eye on how that data will affect interest rates. To be more precise, you wan

When you hear the word “patterns,” you may immediately jump to the conclusion that this is old-fashioned, subjective “chart reading” and inferior to math-based indicators generated in seconds by a software program. That would be a mistake. While it is true that it takes some time to learn chart patt