In forex trading, there’s ample logic behind the rhyme “the trend is your friend.” Trading in the direction of a strong trend both minimizes your risk and increases your potential profit.

Unfortunately, many people who start trading find success difficult to achieve, especially in the first few years after starting.  Trading is a challenging endeavour that has torn people from across the world across generations, from every extreme of their emotions.  It is our money that is directly involved in trading and therefore at risk, and the potential of making more money is our primary motivation for beginning this undertaking.  Therefore, any emotions that we may associate with other endeavours are heightened because money is something that seems to accentuate any natural human emotions that we have.  Ironically, it is the money that encourages the vast majority to attempt to trade yet it is the money that causes most people to fail.

Another month and another increase in the number of coronavirus cases all around the world as this now passes 25 million with over 850,000 deaths.  The coronavirus pandemic is not going away any time soon, and it continues to impact everyday life and more importantly the global economy.  Economies of all sizes around the world are feeling the wrath of the COVID-19 pandemic as central banks have dug deep into their toolboxes to attempt to save their countries from total collapse economically. 

As forex traders seek out stable investments that can hedge against inflation, market instability, and other geopolitical factors affecting currency prices, gold has grown in popularity over the past few years. Traders can use gold as a way to hedge against other investments, or as a safe haven that provides consistency over time and is more resistant to dramatic swings in valuation than many other currencies are.

If you’re serious about forex trading, you need to understand how charts and chart analysis tools can help you identify trades that maximize your potential earnings while minimizing risk. 

Most forex traders want to stay active throughout the year, even as market conditions change. Whether you’re facing a bull market or a bear market, forex trading opportunities are out there for individuals who are willing to do the research and adapt their strategies.

The key to trading in any market is understanding the factors affecting price movements. Although uncertainty in market conditions is risky territory for any trader, volatility is a profit opportunity if you have the right tools at your disposal.

Here’s a look at some basic steps you can take to adjust your trading strategy based on changing market conditions.

I still am bemused by the number of traders I speak to who still haven’t finalized their trading plans, nor developed an idea of the way they are going to trade.  The way you are going to trade hinges a lot on your time frame you choose which is not something that is obvious to someone starting out in trading.  

One of the most important parts of being an effective trader is knowing the parameters within which you are operating.  These parameters including things like available capital, personal risk tolerance, market knowledge, and time availability.  This last one, time, could be the most important of all when developing an effective trading plan, and can go a long way in determining what and how you trade.

Another month and another increase in the number of coronavirus cases all around the world as this now passes 17 million with over 675,000 deaths.  What is certain is that coronavirus pandemic is not going away any time soon, as it continues to wreak havoc across the world.  Economies of all sizes around the world are feeling the wrath of the COVID-19 pandemic as central banks have taken emergency action to cut rates (some repeatedly) and increase stimulus measures.  The United States Commerce Department recently announced that the U.S. gross domestic product contracted at a staggering seasonally adjusted annual rate of 32.9% in the April-June quarter, providing some tangible evidence of the significant impact the coronavirus has had.   In the recent two-day U.S. Federal Reserve meeting, the official statement said, “The path of the economy will depend significantly on the course of the virus.”  “It’s just such an important sentence, we decided it needed to be in our post-meeting statement,” Fed Chairman Jerome Powell added during his post-meeting news conference. “It’s so fundamental” which only underscores how significant this event really is on the global economy. 

As the world navigates its way through the coronavirus pandemic that has impacted everyone’s life, it is timely that we look forward to our trading post-COVID-19 and also look back on some of the lessons we have learned in the last 12 months.  

What have we been reminded of in the last 12 months?