Forex trading is the trading of currencies and it is a very rapidly changing market. Currencies change on a daily basis and can make substantial gains or losses within minutes. In such a market speculation is a key decision making factor, one would think. However, when it comes to currency speculations versus Forex trading it does not make sense to just guess, even though it is impossible to say anything for sure.
When it comes to the question of currency speculations versus Forex trading, then Forex trading will win anytime, but only if coupled together with analysis and careful planning. Speculation does not do traders any good, because if there is no basis for your theory then it will also probably not happen that way. The only real way to determine with a bit of certainty how a particular currency will act during the next day or even week is to take a close look at the past behavior. The best way to do this is to look at charts that show daily changes for any amount of time, but a month is the least what is needed.
Currency speculations versus Forex trading also can create problems when a trader decides to ignore real facts and listen to gossip. There are many journalists or traders who like talking about theories and say things that they don't know for sure. These rumors should be ignored, because listening to them and basing decisions on them is an investment sure to fail. A good example would be to hear rumors about a currency hitting its peak and then to trade accordingly. However, if that does not happen but the opposite does, then you have not only lost money but lost a chance.
You will often hear that trading is not an emotional matter, but when it comes to currency it can be. No one agrees if their hard earned money goes in vein... Many people and companies around the world act by their feelings and if they are hurt for some reason, it will affect the whole economy and that includes the used currency.
Dr. Joshua Geralds is a successful Investment Specialist with over twenty years experience increasing the income of people world wide. Visit http://www.pipsalot.com to learn how to make steady profits through safe trading.
When it comes to the question of currency speculations versus Forex trading, then Forex trading will win anytime, but only if coupled together with analysis and careful planning. Speculation does not do traders any good, because if there is no basis for your theory then it will also probably not happen that way. The only real way to determine with a bit of certainty how a particular currency will act during the next day or even week is to take a close look at the past behavior. The best way to do this is to look at charts that show daily changes for any amount of time, but a month is the least what is needed.
Currency speculations versus Forex trading also can create problems when a trader decides to ignore real facts and listen to gossip. There are many journalists or traders who like talking about theories and say things that they don't know for sure. These rumors should be ignored, because listening to them and basing decisions on them is an investment sure to fail. A good example would be to hear rumors about a currency hitting its peak and then to trade accordingly. However, if that does not happen but the opposite does, then you have not only lost money but lost a chance.
You will often hear that trading is not an emotional matter, but when it comes to currency it can be. No one agrees if their hard earned money goes in vein... Many people and companies around the world act by their feelings and if they are hurt for some reason, it will affect the whole economy and that includes the used currency.
Dr. Joshua Geralds is a successful Investment Specialist with over twenty years experience increasing the income of people world wide. Visit http://www.pipsalot.com to learn how to make steady profits through safe trading.
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