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Secrets of Forex
Basic Forex trading can be profitable but if you learn the true secrets of Forex you can become wealthy. There are three major Forex markets in London, New York and Tokyo. Trading in the trillions of dollars continues around the clock on all business days of the year. And there is aftermarket trading that fills the gaps when the major markets are closed. Traders must learn the basics of trading currencies, examine the fundamentals that drive currency rates and track market sentiment with technical analysis of Forex currencies. Now add a few secrets of Forex.
No Free Lunch
The first and most commonly forgotten of the secrets of Forex is that there is no free lunch. Someone who promises untold riches by trading your money is just as likely working a pyramid scheme as not. Anyone who is able to routinely double their money every month, as an example, does not need your money to get rich and remain rich. When you see that someone is offering untold profits with no work on your part do not just walk away, run!
There Is Always Someone Working an Advantage
There is an ongoing Forex investigation into traders who shared price setting info in chat rooms and thereby increased their profits to the detriment of all others. And there are big investment banks that seem to have arranged trades and commissions in such a way as to benefit their bottom lines to the detriment of their clients. There is not always a good way to see this coming but an excellent rule of thumb is that when you do not understand the current market you do not need to trade. And taking a contrarian view of the market does not mean that you are crazy. It may be that you are the first to spot shenanigans of the part of the traders in a big investment house.
Big Money Calls the Tune
Big money moves the markets this should not really be one of the secrets of Forex but many traders seem to forget it. The best approach for a small trader is to profit from the temporary market inefficiency caused by big money and by the actions of central banks in their attempts to manipulation the market for the advantage of their nation. The most common and recurring example is the purchase of US dollars by Japan, Taiwan, Mainland China and others in an attempt to suppress the values of their currencies in order be able to sell more products in the North American market. When you know that this is routinely happening you are privy to one of the open secrets of Forex and can trade accordingly and profitably.
Patience and Perseverance Pay Off
The comedian Woody Allen one joked that ninety percent of success in life is just showing up. Doing your homework every day should not be one of the secrets of Forex but it seems to be. Being at your trade station when there is action is another. If you pay attention you will spot one of the secrets of Forex and be able to profit from it.