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Forex Trading

To succeed at forex trading you need to understand greed and fear and why it makes most traders lose. Learn to sell greed and buy fear and you can catch some great high return, low risk trades - while the majority lose.

First let's start with a simple equation which in forex trading gives us price

Fundamentals + Investor Psychology = Price

Let's look at this simple equation in more detail

In forex trading prices move in line with the long term fundamentals over time

that prices get pushed to far to the downside.

When a market has been pushed to far up or down by these emotions, the price eventually recoils beck to be in line with the longer term fundamentals.

FACT:

Most markets collapse when they are most bullish and rally when their most bearish
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3.22 Copyright (C) 2007 Alain Georgette / Copyright (C) 2006 Frantisek Hliva. All rights reserved."