Forex Trading and Miscellaneous

There appears to be two binary opinions with regards to the overall value of backtesting and that opinion is evenly divided. Many traders swear by backtesting, others cite it as patently useless, claiming that only forward testing in real time in the market place works. But is there a critical logical fault in the claim […]

Discussing various trading methods and strategies with fellow traders, can prove to be a fascinating and enjoyable exercise. Many of us more experienced traders, will enjoy conversing with novice traders, who think they’ve discovered the infamous holy grail of trading. We don’t engage with them in order to indulge in some form of righteous smugness,

Many traders will ask the most relevant and pertinent questions when they first discover forex trading, as either an investment hobby or potential career; “what do I have to do in order to become a trader, how much do I need to trade, how long will it take to potentially become successful?” appear to be

“In the world of money, which is a world shaped by human behavior, nobody has the foggiest notion of what will happen in the future. Mark that word – Nobody! Thus the successful trader does not base moves on what supposedly will happen, but reacts instead to what does happen”. – Linda Raschke. * One

Many of us have experienced the following scenario; we spend time backtesting a trading strategy involving technical indicators, it delivers a 60:40 win-loss ratio. We then judge it to have potential, therefore we successfully test it live in demo mode. We then test it with a percentage of our capital at risk and it fails.

Why is it that we appear to get over excited with winning trades and close them early, in order to bank the profits and yet we allow our losing trades to run, desperately hoping and praying that they’ll somehow turn around and come back into profit? Psychologists have begun to explain the process by establishing

From an early age we’re conditioned to believe that hard work equals results, that the more effort we put into an activity then the chances are we’ll experience greater success, to paraphrase the famous golfer Gary Player; “the harder I practice, the luckier I get.” The notion that dedication, application, practice and overall “hard work”

Many analysts, trading tutors and market commentators, will often discuss the various trading styles and suggest that novice and intermediate level traders should become aware of the four key classifications and match their psyche accordingly to that trading style. The four key trading styles being; scalping, day trading, swing trading and position trading. However, and

If you’re one of the trading savants, who discovers forex trading (by accident or design) and immediately figures it all out, becoming profitable within weeks, whilst building up your small account to a large account, without suffering much in the way of losses and experiencing no drawdown, then look away now, this article will be

Although they’re often classed as “soft data” metrics, sentiment readings are invaluable when attempting to determine the direction of forex currency pairs. Examples of hard data economic calendar results would be: •    Unemployment •    Inflation •    Official economic numbers (manufacturing growth, GDP growth and interest rate decisions) Soft data would be classed as: •    Sentiment