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gandra
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http://www.fxsforexsrbijaforum.com/

The Six Forces of Forex

on Sun Feb 01, 2015 11:40 pm
Analysis

For most traders, a comprehensive trading plan is an unmet ideal. In the foreign exchange markets in particular, the lure of easy money often distracts the trader from the reality of hard work. But as anyone who has had success trading can attest, trading is a discipline. It requires a plan informed by extensive knowledge of the markets and the ability to carefully, consistently apply that knowledge. The main ingredient of any trading plan is an understanding of the context that defines the trading environment.

Trading forex is like watching a school of fish move. One minute is total harmony, the next, complete chaos. As the observer of this school of fish, do you believe you can accurately predict the direction the school of fish will move each time? Would you bet on it?

What causes the fish to move the way they do? Why do they work together in one moment, moving with force and precision, and move in what seems to be an infinite number of directions the next? There’s no way to know unless you can sense what the fish sense each time they move. The fish have an instinct about the nature of their environment. They understand the context of all things around them – natively – and can react accordingly. Surely if you shared this understanding you’d be a much more accurate predictor of fish movement!

Trading forex is not much different - we need to develop that keen sense of what is happening around us. Will we ever be able to predict every move in the forex markets? Absolutely not. But we can use our understanding of the context of the market – the six forces of forex – to make better, more profitable trading choices. Once we understand these forces, we can create and operate within a comprehensive trading plan:


  1. Who trades forex? Understand who participates in the markets, why they are successful, and how you can emulate them.
  2. Why trade forex? There are superior returns in forex, but not for all investors. Are you one of them?
  3. Where should you trade? Choose to work with service providers who can efficiently enable your style of trading.
  4. What should you trade? Select the currency pair, entry, exit and money management methods that will maximize your returns.
  5. When should you trade? Trade when the environment is most likely to produce the best conditions for executing your system.
  6. How should you trade? Trade using methods that maximize your ability to emulate the proven winners.


Knowledge of these forces and how they work is a major determinant of your success as a trader.
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Vlad
Number of messages : 192
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Re: The Six Forces of Forex

on Sun Apr 26, 2015 11:09 pm
Psychological factor is very important in trade. Many traders do not take it into account and get into serious problems, lose their deposit. There is a special material about how to deal with psychological problems on Fresh web-site.
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gandra
Global Moderator
Number of messages : 3500
Points : 7644
Date of Entry : 2013-01-13
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http://www.fxsforexsrbijaforum.com/

Re: The Six Forces of Forex

on Sun Apr 26, 2015 11:22 pm
Okay I'm glad!
But you can also here to publish these facts.
bad boys
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Vlad
Number of messages : 192
Points : 1330
Date of Entry : 2015-04-21
Year : 28

Re: The Six Forces of Forex

on Thu Jun 18, 2015 9:23 pm
Consider three simple steps that will help us to overcome the negative effects of stress state: 1.Admit to yourself that you are under stress! Recognition of stress is the first step to overcoming it. 2. Calm down! If you are trading in a stressful condition, as a rule, you will make wrong trading decisions. If you feel that you are under stress, take a deep breath and get away for a while from the terminal. Use this time to gather your thoughts and try to isolate those emotions that interfere with making informed trading decisions. 3. Determine the source of stress! The sooner you can determine it, the earlier you will overcome it.
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julee
Number of messages : 4
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Re: The Six Forces of Forex

on Fri Mar 24, 2017 3:42 pm
I think another very important factor while trading is to learn to accept one's unsuccessful deals, because it's after such unsuccessfull deals that one loses their enthusiasm to continue. and even more importantly, one must learn to make conclusions and no matter what keep learning.
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Re: The Six Forces of Forex

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