Education

Forex Trading – How to Handle a Losing Streak

They say that wealth brings with it many unforeseen problems, yet most of would still prefer to have the opportunity to face the challenges that come from too much success. Unfortunately, every trader will sometimes have to handle the opposite set of problems that arise from a losing streak. Even the most successful Forex traders have tales to tell of bad patches when nothing seemed to right, and the ability to ride out those losing streaks until better days come is a valuable skill for anyone in the Forex market to acquire. Here are a few tips to bear in mind when a losing streak hits:
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The Relationship Between Interest Rates and the Forex Market

Everyone who participates in the Foreign Exchange Market takes an interest in changes in the interest rates of the countries whose currency they are contemplating buying or selling. Yet what form that relationship takes is largely dependent upon the perspective of the investor. Interest rates can be interpreted in a number of ways based on what your investment strategy is, so no two investors may draw identical conclusions about what those interest rates mean.  Read more

How the Economy of China Affects the US Economy and the Dollar

China is the world’s third largest economy, surpassed only by the United States and Europe. With a growth rate averaging around ten percent per year since the 1980’s, China is catching up real fast. As China continues to grow as a major player in the global economy, it will also have an increasing influence on the world currency markets, especially in light of China’s tendency to pursue policies designed to artificially undervalue their own currency. Read more

Inflation and Deflation – How Do They Affect Currency Fluctuations?

Economic trends, monetary policy and currency fluctuations are all critical variables in the Forex trading formula. The impact of inflation or deflation on the money supply impacts the purchasing power of money, and the wealth of currency holders. Because of that, it’s crucial to understand the differences between inflation and deflation when trading currencies. Read more

Forex Hedging – How Does It Work?

Hedging takes place in almost all types of financial markets. It involves making multiple investments so that potential losses from one investment can be cushioned or covered by the other investment. For example, two companies that have differing characteristics in terms of market performance could be invested in to ensure that if one does badly, the other will do well. Read more