Forex Library

The journey to wealth through Forex trading is characterized by both high volatility and unpredictability in the currency markets. Despite a century of exchanges and countless experts, no universal formula for success has been uncovered. In fact, for 95% traders, Forex trading is anything but successful. Mostly, this is the result of emotional trading and a lack of tried and tested trading strategies, but the unpredictable nature of currency markets plays a significant role as well.

For long-term success, every trader should aim to educate themselves as much as possible, so that they can better deal with the unpredictability of currency markets and the psychological strain of professional trading, and avoid many of the pitfalls that most traders tend to encounter.

Forex Learning Resources

The History of Forex
Margin trading, the foundational principle of the Forex market, involves conducting financial operations with leverage. The deposit acts as a pledge (margin), and in case of losses, the Forex broker compensates for the loss using the deposit. This is known as a Deposit Insurance. It's crucial not to use the entire available amount when making currency contracts to avoid exceeding deposit insurance limits. If the losses exceed this threshold, you will lose all of your pledged funds.

Trading Articles
The modern investment landscape offers various tools, from stocks to bank deposits. Investments differ in risk and profitability, with Forex trading being one of the riskiest yet most profitable investment methods. Forex trading potential exceeds that of traditional options, which often yield between 5 to 25% annually, offering yields of up to 100% or even more annually. No legal business or conservative financial tool can match these percentages. Learn more about Forex trading with our comprehensive, up-to-date, and professionally written trading articles!

A Trader’s First Steps
Successful Forex trading hinges on proper capital management, limiting risks through stop orders, and maintaining a level-headed trading plan. Most of the time, individual trades shouldn’t exceed 5% of your total portfolio. Professionals often further limit their rules further, tailoring strategies to the size of capital and the planned level of profit. Furthermore, it is important to recognize that trading strategies and limits used during bear markets may or may not work during bull markets and vice versa. With this in mind, many traders have specific strategies for different market conditions.

Trading Indicators
Success in Forex trading comes down to essentials like managing your funds wisely and using a mix of tools. One important tool for traders of all levels, from beginners to professionals, is trading indicators. These indicators are practical tools that help traders create their own strategies, balance risks, and boost overall trading effectiveness

Global Forex Trading Hours
Forex operates 24/5 globally, but the best times to trade specific currency pairs depend on different time zones. Therefore, traders need to consider time zones' influence on their selected currency pairs to succeed in Forex trading. For example, while transactions involving the Japanese Yen (JPY) make up a total of 16,5% of the daily turnover on average, the best time to trade them is during the Asian session (00:00-09:00 UTC), which may be a hindrance for some traders. While bots can help in this instance, often some form of manual overview is also needed, which is why in-depth knowledge of trading hours is important for all traders.