Forex trading is often seen as a numbers game - charts, indicators, economic data, and technical patterns. But beneath the surface, the most decisive factor in a trader’s success or failure is neither market knowledge nor strategy. It’s psychology.
In the fast-paced world of forex trading, where fortunes can be made or lost in seconds, many traders dive in armed with charts, indicators, and market news - but without a clear trading plan. This absence of a structured approach is one of the most significant factors contributing to failure in the forex market.
Investors are constantly on the lookout for the best opportunities to maximize their returns. Stocks and cryptocurrencies are two popular asset classes that attract both beginners and experienced traders. However, each trading method has its own unique characteristics, advantages, and risks.
Forex trading is the buying and selling of different currencies on the foreign exchange market. On the other hand, cryptocurrency trading involves buying and selling digital currencies (e.g. Bitcoin, Ethereum, etc) on a decentralized digital exchange.
This article will not analyze any technical indicator, nor will explain trading platforms settings, tricks, spreads, or any other adjustment you will need to apply to your trading plan to gain higher profits.
Proprietary trading, also known as "prop trading", is a form of trading where financial institutions, such as banks, investment banks, and hedge funds use their own capital to trade in financial markets.
The excitement of trading forex and following the Markets and economic news is every trader’s dream to reach maximum profitability. What is even better is not having to spend a lot of time, and still to keep making profits. It’s almost having a passive income, but with the minimum effort from a trader’s perspective.
Having a vast knowledge of forex and the financial industry is not enough to make you a successful trader. As many things in life, psychology is the key!
Which type of forex trader are you? One of the most basic concepts in forex trading is to understand the trading strategy a trader is about to follow, which in turn will characterize and distinguish his/her trading style and type.
Continuing our previous post on how to choose the best forex broker, we will analyze certain basic concepts which reveal that forex trading can be challenging. The complexity of the trading platform will not be considered since each trader selects the trading environment which best suits his/her needs while feeling at the same time as comfortable as possible.
