Articles

Over-trading is one of the biggest mistakes you can make in financial markets. Having a great idea and acting upon it before the time is right can lead to losses, even if the idea behind the trade is truly fantastic. Take EURUSD. Ever since the European Central Bank’s January meeting ECB President Trichet has been labelled hawkish. Anyone who watches the interest rate markets would have seen the spread between German (proxy for Eurozone) and US government bond yields start to widen in Europe’s favour. Eventually, this spread equated to EURUSD reaching 1.4000. This sounds like a good trade since FX markets are sensitive to interest rates, but as of the start of February this level has been elusive. For those traders who put the...

When it comes to trading, one of the most neglected subjects are those dealing with trading psychology. Most traders spend days, months and even years trying to find the right system. But having a system is just part of the game. Don't get me wrong, it is very important to have a system that perfectly suits the trader, but it is as important as having a money management plan, or to understand all psychology barriers that may affect the trader decisions and other issues. Most Forex trading courses and Forex training programs forget about these important aspects of trading. But the truth is that in order to succeed in this business, there must be a complete equilibrium between all important aspects of trading. In the trading...

In the Forex market, sometimes you get the fruit and sometimes you get trapped and shot. Why? A friend of mine volunteers on a regular basis to rid his neighborhood of rodents and animal riff-raff: the woodchucks, groundhogs, and possums that eat up gardens, attack family pets, and so on. He sets a trap with ripe fruit or tuna fish. The animal enters the trap for the food. If the animal can't find its way out, it is eventually shot and buried. Possums are relatively easy to catch. They go for the fruit, they get caught, and then, when the trapper approaches the trap, the possum simply plays dead. It plays dead because that's the best defense mechanism that it has. A woodchuck is tougher to trap. A big one might enter the trap, eat...