Mindblown: a blog about philosophy.
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Inflation & Inflation Indicators
Inflation’s Impact on an Economy Inflation measures the rate at which prices in an economy are rising. Inflation is tied directly to the purchasing power of a currency within its borders and affects its standing on the international markets. Prices of goods, houses, labour, production materials, etc., are all closely monitored to see if their…
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Psychology of Trading
Having Flexibility in Trading Strategies A trader should have some general flexibility in his or her approach in building equity depending on his or her successes and failures. Basically, there are several different approaches to sizing a position depending on total equity. There are sophisticated approaches and simple approaches. The simplest way is to use…
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A Trader’s Journal
Creating and Maintaining a Traders Journal/Log In order to maintain a trading plan it is very important to create and keep a trading log. In it, a trader keeps notes and information about each trade they execute. The main pieces of information one needs to record in the journal are a time stamp of the…
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Employment Indicators
Employment indicators reflect the overall health of an economy or business cycle. In order to understand how an economy is functioning, it is important to know how many jobs are being created, what percentage of the work force is actively working, and how many new people are claiming unemployment. It is also important to monitor…
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Trend Reversal Patterns
The sideways price action of a reversal pattern signifies that upon breaking out of the pattern there will be a turnaround in the current trend. Head and Shoulders The Head and Shoulders pattern is one of the most classic patterns in a technical analyst’s toolkit. This three-peak formation is named for its resemblance to a…
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How To Trade Forex
Forex trading involves buying and selling currencies with the aim of making a profit from fluctuations in exchange rates. The most often traded currencies, the major currencies, are those of countries with stable governments and respected central banks that target low inflation. Here are the basic steps to trade forex: Remember, forex trading involves risks,…
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The Mechanics Of A Forex Trade
The mechanics of a forex trade involve the process of buying and selling currencies in the foreign exchange market. Forex (short for foreign exchange) is the global marketplace for trading different currencies against each other. Here’s a step-by-step overview of how a typical forex trade works: It’s important to note that forex trading carries a…
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How Forex Trading Works
So how does the actual trading work? A complete transaction is the buying of one currency and selling of another at the same time. This is normally conducted as a spot transaction; there are other forms of Forex transaction, such as futures and options. The technical definition for a spot contract is a transaction at…
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Operation Of Forex Markets
Whereas there are thousands of securities on the stock market, in the Forex market most trading takes place in only a few currencies; the U.S. Dollar ($), European Currency Unit (€), Japanese Yen (¥), British Pound Sterling (£), Swiss Franc (Sf), Canadian Dollar (Can$), and to a lesser extent, the Australian and New Zealand Dollars.…
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How To Decide Which Currency Pairs To Trade
Buying or selling currencies in response to economic or political events which occur are reactive, whereas buying or selling currencies on anticipated events is speculative. The bulk of currency activity is generated by market participants anticipating the direction of currency prices. In general, the value of a currency versus other currencies is a reflection of…
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