Trading BITES !

Dr Watson Goh By Dr Watson Goh, 20th Apr 2011 | Follow this author | RSS Feed | Short URL http://nut.bz/24p9tlom/
Posted in Wikinut>Money>Forex Trading

Operating in the Forex market is a major challenge for anyone. The amount of money that can be made if things are done correctly is astounding. However, a few small mistakes is all that is required for things to go badly wrong and end up costing the trader a significant amount. In this respect, it is important to have as broad a view of the market as possible, taking in things you know, things you suspect, and things you glean from other traders.

Trading Dangers

Operating on the Forex market is a major challenge for anyone. The amount of money that can be made if things are done correctly is astounding. However, a few small mistakes is all that is required for things to go badly wrong and end up costing you a significant amount. In this respect, it is important to have as broad a view of the market as possible, taking in things you know, things you suspect, and things you glean from other traders.

The information that goes into setting stock and currency prices is some of the most constantly updated and comprehensive data you can find anywhere.

The key thing to keep in mind about trading in any exchange market, is that things can move very quickly. It is very much the fashion to take lunch at your desk if you work in the city, because leaving your seat and the figures that you can see from there could be crucial.

When you get back, you could find yourself down by some considerable amount of money. The charts and graphs that you need to keep track of are constantly updating and at the first sign of a wobble in the market – which can be caused by any one of literally hundreds of factors – a trader will need to react.

However, it is also a mistake to over-react.

A small correction in the market may look like a drop, and it is human nature to consider looking at bailing out of your position. This is often an error, as the situation is just as likely to right itself given time.

Taking notice of all the available data is highly essential.

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Comments

author avatar yugasini
3rd Oct 2012 (#)

Hi Dr Watson Goh,

Thanks for sharing about the up and downs in the Forext market, You have not replied to my comment posted for other article in the month of March. I wish to learn more about forex trading from you, have a nice day.

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