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5 good Forex trading habits

The foreign exchange market, also known as Forex, is full of traders looking to profit from the fluctuating exchange rates of foreign currencies. Whether you're a day trader or simply trade in your spare time, there are several simple ways to improve your success in this prosperous market. By engaging in five easy habits you can make the most of the market while remembering to protect your assets.

Short-term Forex trades versus long-term Forex trades

In the Forex market - also known as the foreign exchange market - traders buy and sell foreign currencies and make money off of the variations in exchange rates. Some traders make short-term trades on a daily basis, while others hold their positions for much longer before making their transaction. Depending on the amount you're willing to risk and the amount of time you have to spend on making trades, you can choose to engage in long-term trading, also called position trading, or short-term trading, often referred to as day trading.

The myths of Forex trading

The Forex market, also known as the foreign exchange market or just FX, is a worldwide financial market where people buy and sell foreign currencies and benefit from discrepancies in exchange rates. The foreign exchange market is one of the largest financial markets in the world and it is estimated that USD 3.5 trillion is traded via this platform every day.

The top 5 trading currencies in the Forex Market- Forex - Forex Trading

The top 5 trading currencies in the Forex Market

Currencies are traded for profit on the Forex Market, with traders speculating on the value of international currencies before exchanging one for another. Opening each day in Australia and closing in New York, Forex operates across international time zones, trading currencies 24/7.

Read on for more on currency trading and the top five Forex traded currencies …

Who trades currencies?

Banks, businesses and individuals each use Forex to trade currencies.

Why trade currencies?

Traders speculate on fluctuations in international currency values to make a profit by trading currencies on the Forex market.

These two numbers will tell when investor sentiment turns sour

Evaldo Albuquerque (February 28, 2011)

In the past weeks, the dollar has weakened against major currencies, despite the crisis in the Middle East. In other words, the dollar did not benefit from risk aversion. Currencies like the Japanese yen and the Swiss franc were used as safe-haven instead. Does that mean the dollar’s role as safe-haven currency is over? I don’t believe so.

I think it just depends how bad things get out there. You see, most traders have been using the dollar to fund risky investments. If things get really bad, they will have to close their positions by buying the dollar. So how can you tell if things are getting really bad?

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