Why Positive Thinking Matters in Forex Trading

As forex traders we all have those days (or weeks) when things just don’t go our way. Our losses are overshadowing our wins, and we can’t seem to consistently win. We start to wonder if we can ever make any “real” money and if becoming a full-time trader will ever be realized.

Being successful, whether it’s as a trader, a business owner, or even as a parent, takes a lot of personal development. Day after day you have to deal with many uncertainties, some known and many others unknown. You are continually tested by your surroundings (the currency market, your employees and coworkers, or your children), and how you react before, during and after these challenges all play part in your success.

“Why did I ever get into forex trading? It’s nothing but a stress builder and a gigantic head ache. Who am I kidding? I think my hair is falling out!”

If you’ve been feeling this way and are asking yourself some of the same questions, it’s time to sit down and work on your positive thinking. Any successful trader will tell you that he has made the mental decision to be as positive as possible in thinking, acting and doing, and that having a positive mind is critical in overcoming the setbacks brought on while trading.

What can you do to become a better positive thinker?
Start off the morning by looking at yourself in the mirror and saying “I’m good enough, I’m smart enough, and gosh darn it, people LIKE me!” And say it just like Stuart Smiley from Saturday Night Live… with enthusiasm! No really, promoting yourself to YOU is a great first step in the right direction. It helps you get in the right mind set, and helps you to start your day thinking positive thoughts. If looking in a mirror scares you, I’m sorry…try just saying it out loud to yourself.

Next, observe your negative thoughts and understand that only you can change them. Once you start ridding yourself of those thoughts, you are thinking positively. The market has its ups and downs. Your trading account might have the same ups and downs. Losses are inevitable. These happen to everyone. The difference is that your positive attitude makes you better equipped to deal with setbacks.

Think and visualize yourself as already being a successful trader. Imagine that your trading experience allows you to easily notice changes in the market and react to them by making profitable trades. Imagine only positive results. Imagine the wealth you’ve created and the lifestyle it affords you. This type of thinking will help reinforce the ideas that first led you to the currency market and motivate you to stick with it.

Another easy method to assist you in becoming a positive thinker is to surround yourself with a positive environment. This can be your work space or the people around you. The world is filled with doubters and people who want to “help” you by destroying your dreams or shooting you out of the sky. Make it easier on YOU by surrounding yourself with other positive thinkers who reassure and support your trading endeavor. And liven up your forex trading space so it’s inviting and makes you want to be there. Maybe it’s time to replace your crusty keyboard?

Also help yourself by being a positive talker to others and about youself. Speaking positively fills your head with positive thoughts and ideas. Negative self-talk only helps to hinder your potential as a trader and keeps you from growing.

Do your best to welcome the currency market’s obstacles and view them as your opportunities for profits and success. Dealing with these obstacles will only help you to create a better trading experience. Small changes in the way you think about yourself, think about others and think about trading will go a long way in your overall success as a trader.

Source: www.babypips.com

How does the foreign-exchange market trade 24 hours a day?

The forex market is the largest financial market in the world, trading around $1.5 trillion each day. Trading in the forex is not done at one central location but is conducted between participants through electronic communication networks (ECNs) and phone networks in various markets around the world. 

The market is open 24 hours a day from 5pm EST on Sunday until 4pm EST Friday. The reason that the markets are open 24 hours a day is that currencies are in high demand. The international scope of currency trading means that there are always traders somewhere who are making and meeting demands for a particular currency. 

Currency is also needed around the world for international trade, as well as bycentral banks and global businesses. Central banks have relied on foreign-exchange markets since 1971 - when fixed-currency markets ceased to exist because the gold standard was dropped. Since that time, most international currencies have been "floated", rather than pegged to the value of gold. 

At each second of every day, countries' economies are growing and shrinking because of economic and political instability and infinite other perpetual changes. Central banks seek to stabilize their country's currency by trading it on the open market and keeping a relative value compared to other world currencies. Businesses that operate in many countries seek to mitigate the risks of doing business in foreign markets and hedge currency risk. 

To do this, they enter into currency swaps, giving them the right, but not necessarily the obligation to buy a set amount of a foreign currency for a set price in another currency at a date in the future. By doing this, they are limiting their exposure to large fluctuations in currency valuations. Due to the importance of currencies on the international stage there needs to be round-the-clock trading at all times. Domestic stock, bond and commodity exchanges are not as relevant, or in need, on the international stage and are not required to trade beyond the standard business day in the issuer's home country. Due to the focus on the domestic market, demand for trade in these markets is not high enough to justify opening 24 hours a day, as few shares would be traded at 3am, for example. 

The ability of the forex to trade over a 24-hour period is due in part to different time zones and the fact it is comprised of a network of computers, rather than any one physical exchange that closes at a particular time. When you hear that the U.S. dollar closed at a certain rate, it simply means that that was the rate at market close in New York. But it continues to be traded around the world long after New York's close, unlike securities. 

The forex market can be split into three main regions: Australasia, Europe and North America. Within each of these main areas there are several major financial centers. For example, Europe is comprised of major centers like London, Paris, Frankfurt and Zurich. Banks, institutions and dealers all conduct forex trading for themselves and their clients in each of these markets. 

Each day of forex trading starts with the opening of the Australasia area, followed by Europe and then North America. As one region's markets close another opens, or has already opened, and continues to trade in the forex market. Often these markets will overlap for a couple hours providing some of the most active forex trading. So if a forex trader in Australia wakes up at 3am and decides to trade currency, they will be unable to do so through forex dealers located in Australasia but they can make as many trades as they want through European or North American dealers. With all of this action happening across borders with little attention to time and space, the sum is that there is no point during the trading week that a participant in the forex market can't potentially make a currency trade. 

Article from http://www.investopedia.com