Forex encyclopedia

Most part of beginning traders neglect psychological factor of market trading. However, over the time, everyone of them comes to an idea that psychology is 90% of trading success. Why does psychology impact so strong on resukts of trading? The main factor us that while looking at market a person percepts signals through the lense of one's knowledge and experience, which also includes fear, greed etc. Let's take two traders each made by one trade, but the first one will have profitable trade and the second one will have loss-making trade. We will analyze behavior of traders. Let's think their experience is pretty moderate and is equal. Upon making a profitable trade, the first trader will be encouraged with a successful start of the day, will think about reserve money to cover a potential loss and will have more ease in actions. On the one hand, it gives free play to looking for situations with better results, on the other, it can dull attention and as a consequence, to cause more harm than good.
Capital turnover in the forex market is billions of U.S. dollars per day makes it the largest in market the world. Total capital and the number actors involved grow from time to time ranging from retail traders, brokers, banks, institutions to other big players. Trading in the forex market carries a relatively high risk. What makes it interesting is the forex market trading schedule: the time from Sunday night to Saturday morning, and the possibility to trade can from all over the world with the support of online technology.
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Forex encyclopedia
Forex encyclopedia “Clever FX” is the unique service created by FreshForex to introduce world of Forex to traders. The main purpose is to share knowledge of experienced traders with novice traders in simple and convenient form. Every trader will be able to learn something new here. If you are a professional trader, we invite you to write an article for “Clever FX” and get reward. Let's write Forex history together!
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