because at that time major Asian exchanges are still open and European afternoons because at that time major US markets trading account are open at the same time as Europe. Therefore, wherever you live and whatever your work hours are you cánido always find some time to participate in forex trading as opposed to stock market where you are usually limited to the regular business hours. And when it comes to profit potential lets have a look at figures below: Figure once. is a daily candlestick chart for America On line (AOL) covering a period from June to September dos mil tres. Figure doce. is a daily candlestick chart for S&P quinientos y también-mini contract (ES) covering a period from June to September dos mil tres. Figure trece. is a daily candlestick chart for EUR/USD covering the same period. We will now illustrate the difference in profit potential among those three popular trading instruments. Let’s assume that in all three cases our start up capital is dólares americanos 5,000. We will choose the best five trades that we could have placed in each trading instrument (those trades are described with T1 ..T5 arrows on each chart) during the above mentioned four month period.

In all of the trading instruments that we have mentioned above there are several order types that are commonly used when trading in any of the currency markets instruments. Market Order A market order does not specify a price; it is executed at the best possible price available. Limit Order A limit order is an order to buy or sell at a designated price. Limit Orders to buy are placed below the current price while limit orders to sell are placed above the current price. Stop Order Stop orders perro be used for three purposes, to minimize a loss on a long or short position, to protect a profit on an existing long or short position, to initiate a new long or short position. A buy order is placed above the current market and is elected only when the market trades at or above, or is bid at or above the stop price. A sell order is placed below the current market and is elected only when the market trades at or below, or offered at or below the stop price. Stop Limit Orders A stop limit order lists two prices and is an attempt to gain more control over the price at which your stop is filled. The first part of the order is written like the above stop order. The second part of the order specifies a limit price. This indicates that once your.

it is normal to have a losing streak that lasts for several months! This philosophy stems from the rationale that after losing significant amount of money, you will have more experience and knowledge in your future trading endeavors. If you went by their estándares, how much of your hardearned money will be left in a few months? This type of attitude sets you up to fail. Why entrar a battle if you are destined to lose? The only purpose for such advice is for currency and futures brokers and dealers to make money on the spreads and commissions that you will pay to them. More often you trade, more profits for your broker or dealer. Day trading in its purest form may have worked in the late 90’s for traders who were trading volatile high tech stocks. Some traders also called “scalpers” were getting in and out of positions in matters of minutes, even seconds and were making their profits on small differences between bid and ask price. However, those days are now gone. In currency trading, if you are planning to scalp, or if you are planning to jump in and out of positions all day long you will not last long. I perro guarantee you that. Also if you plan to purchase an X amount of Euros, GBP or Swiss Francs and just forget about them in a “buy and hold” fashion, most likely you won’t get anywhere.