Bank finance articles and tips

During 1998, 1999, 2000 and 2001 thousands of aggressive, well-funded and mostly young men decided that it would be a wonderful life to sit at home in front of a computer and trade financial markets, making millions of dollars without the grind of a daily job. It is thought that the majority of these traders went completely bankrupt for two reasons; a lack of discipline and a lack of impatience. If you were ask these traders if that was the reason they failed most would say no, their excuse would be that the market turned against them, it was one bad trade or that they were given bad information. However, the truth is that most of these men were greedy, saw a chance to make a lot of money and never took the time to truly learn how to trade and make a living....

Let me be clear about what I will discuss here in this article. You are not going to get a lesson on where or why to place stops. Or whether you should cut your losses short or let your profits run. You have heard this all before. Any trader that does not have a system is doomed to fail in trading. All successful traders use a system whether he admits it or not. Even a discretionary trader uses a system that he has naturally developed over his trading career. It may not be a written mechanical trading system but he knows where to place stops, when to get out and where to take profits. It is his style of trading but he uses that method over and over....

Trading without indicators is also known as Trading Naked or trading with only price action. Most professional traders actually trade naked depending on only price action. Technical analysis is the art of predicting the future price action in the short term based on the past price action. What is on the left of the chart is history and what is on the right of the chart is a mystery....

Foreign currency trading is a huge endeavor staged by the world's largest decentralized financial market called the foreign exchange market or Forex market. In this highly volatile market, trading is done in currency pairs and involves the simultaneous buying and selling of the currencies involved in the pair.

The major currencies that are traded in the foreign currency trading market are the US dollar (USD), Euro (EUR), Japanese yen (JPY), British pound sterling (GBP) and Swiss franc (CHF). The transactions are done in pairs such as EUR/USD. The first one in the pair is called the base currency and the second one is the quote/counter currency. For instance, EUR/USD 1.3031 means that the value of one Euro is equal to 1.3031 US Dollars....

What Is Fundamental Analysis?

Fundamental analysis studies the core underlying elements that influence the price of a particular entity, like a stock or currency. It attempts to predict price action and trends by analysing economic indicators, government policy, societal and other factors within a business cycle framework....

When Forex trading is compared to other financial markets such as the stock market it offers a few more advantages than any of these other markets. This is what makes Forex trading very attractive to new traders....