Trading the forex market may seem over your head but understand that you control when you trade, what you trade, and how much you trade. This means that you control your destiny more that you realize.
This is due to the fact that September is one of the worst performing months for the Dow Joes Industrial Average going back to its creation in with an average monthly drop of 1. However, many well-meaning and talented traders are scared away from the Forex market due to a few misperceptions that can easily be cleared up.
Here are the key points about the control you have when accessing Forex. Few things scare new traders like the leverage in the Forex market. Another misconception that a lot of traders have is that the currency market runs wild around the clock. ATR tells you how much a currency has moved on average over the last 14 periods.
The way to read ATR is as simple as the table that I put together for you implies. This table tells you that by and far, you can expect the GBPJPY to travel more than the others based on its average movement over the last 14 days.
You have more control over your results and exposure than you were likely first led to believe. You can control how much you trade, when you trade and what you trade to determine how exposed you are to the FX market.
Lastly, if you take the extreme example and trade GBPJPY which has the largest ATR at pips per day on average over the last 14 days and trade it during the volatile London Session with too much leverage you are likely setting yourself up for more volatility and account equity swings then you can likely stomach. You can master the material all while earning your completion certificate.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets. Move Back Below 1. Click here to dismiss. Foundations of Technical Analysis: Classic Chart Patterns, Part I.
Upcoming Events Economic Event. Forex Economic Calendar A:More...