To make it easy for you let me assure you that you don't need a
financial degree or a doctoral dissertation in applied mathematics to
be a successful trader. What you do need is a finely tuned and
constantly developing common sense.
In a weird sort of way, many of the "follow-my-1-2-3-secret-system"
systems all share some of the core ingredients of how to make money.
Unfortunately it is what they don't have that makes the difference.
Not so long ago the forex market was the sole domain of institutions,
banks, investment companies and very rich people. Then it came to our
neighbourhood, and the little man could play. Obviously, if we want to
trade and win in this market we must do some analysis of what's going
on in the market, what makes the prices fluctuate and so forth.
A typical institution which specializes in forex trading / forex
investment has an army of analysts and economists and traders who do
fundamental analysis, technical analysis, quantitative analysis and
flow analysis - all contributing to their efforts and their profits.
They also have risk analysts, risk managers, portfolio supervisors and
a host of assistants to all the big shots. And they don't only trade
spot forex, but other instruments like options, forwards and swaps as
well as interest rate instruments.
The two sectors that have most heavily invested in the collation of
timely information are the military and the markets (financial
institutions). You are probably aware of the common view amongst
technical analysts that the current price contains all the necessary
information in the market. In the forex market information is money.
There is one little problem, most information in the forex market is
quite fuzzy.
If you want to make money with online forex trading you better have a
clear understanding of what information is contained in the current
price as well as a few other things which I explain in Bird Watching
in Lion Country.
http://forexhllg.blogspot.com/#
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