Forex Trader Training for Advanced Traders could include a chapter for those who may not be completely convinced of the integrity of the trading models provided by the automated robotic type systems, click for more info.
The currency markets’ constant flux is a stochastic mechanism, i.e. its behavior is unpredictable insofar as its state does not completely decide its next state at any time. In other words because of itself the market won’t rise or fall. It takes momentum from outside to move the market. For example, if an earthquake were to occur without warning in California, people around the globe could start selling dollars as quickly as they could for fear of an economic collapse or a partial collapse in the US. This would provide some traders with a great opportunity to make considerable sums of money.
At that point in time, as the U.S. dollar falls, an automated system will not act to take full advantage of the failure and, by using outdated parameters, may actually negate trading. The stop loss feature will save traders several thousands of dollars from a positive point of view as the currency starts to fall in value.
Fluctuations in a currency sense will vary from very small fluctuations to extremely large fluctuations. There may well be a swing of several cents from hour to hour or a swing of tenths of one cent. These fluctuations come about mainly by breaking news stories.
Many of the more experienced traders abide by what’s called price action i.e. what’s happening to the market as it fluctuates. Some traders do not realize that an earthquake has occurred in California but they see that the dollar’s price has started to shift downwards and they’re jumping on the bandwagon. This approach to price action is used in many industries by traders-capital markets, bond markets, asset markets and financial market derivatives.
Nonetheless, in the following series I would strongly recommend that someone who thinks seriously about taking up trade transfer
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