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Random article: Greed and how to cope with it

Setting to Forex trading, people face many hindrances preventing them from earning. One of the main hindrances in trading is greed of trader. Even if traders elaborated their own view on market and gained a rather good experience of observation of trading situations, they often do not manage to overcome greed and under such conditions accomplishing stable profitable results is a rather hard goal. Let's consider the situation, when this impediment starts blocking: The most frequent moment is when upon opening position and setting Take Profit, trader sees that price moves well towards it and starts shifting this Take Profit hoping to take more than planned; each moment trader's appetite goes up. In the result, upon reversal of price, he cannot close it cause remembers that a while ago profit was higher and greed starts defeating trader. More often, this trader can close earlier profitable trade by Stop Loss because of hope that price will get back to previous profit point.

Popular article: Forex indicators: Force Index

According to A. Elder, 13 periods' Strength Index demonstrates dominating force on the market – bulls or bear - very well. With Force Index (13) above the middle line, bulls rule on the market, whereas FI is below the middle line, bears dominate. With FI dragging near middle line and crossing it a few times, it says about absence of market tendency. New maximum above middle line shows that ascending trend is confirmed. In this respect, a new lowest point below middle line speaks for descending tendency. When with growth or decline of price Force Index (13) starts giving decreasing extreme points – essentially, forming divergence/ convergence – it indicates that current trend loses its significance and a reversal is probable.

New in Encyclopedia

19.07.2019 New article added «Trade»

15.05.2019 New article added «Forex spot trading»

15.05.2019 New article added «Forex trading secrets»

15.05.2019 New article added «Swing trading Forex»

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