Why it is that when a trader is day trading currencies (or for that matter any financial market), that trader can make extraordinary amounts of money?
“It’s because of the risk factor” Many will say
The problem with this sweeping statement is that it doesn’t get to the heart of the matter and neither does it provide a way forward for day traders to make a lot of REAL money.
What we need to examine is what is going on between our ears. Clearly, the trader has one state of mind for
When becoming involved with any kind of trading you are opening yourself and your family to potentially high financial losses. To avoid this, we have to approach currency trading (actually any financial market trading) with a specific and clear understanding of the market and its true purpose.
The forex industry abounds with so many outright lies and half-truths that we need to ensure that we are on guard against:
How the marketers who promote currency trading systems over the Intern
A PIP in forex is a unit of measure to show the change in VALUE between two currencies.
Let’s say you are looking at your trading screen at the EUR/USD currency pairs and you see the price is at 1.2500.
Then it flicks up to 1.2501
Note there are four digits after the decimal point. Most currency pairs are like this.
There are some exceptions like Yen pairs that have two decimal places
Why do you need to know what is a lot size in forex?
Well, you need to know