- Forex is a truly seamless 24-hour market. Trades are conducted while you’re sleeping, eating, and working.
- Forex is a true zero-sum game. This means that a gain is often offset by an equal loss.
- Forex has no secondary measures, unlike other marketplaces. This means it has no upside/downside volume figures or P/E ratios.
- Major Forex players end their days mostly flat – this is because they are often handling billions of dollars - during their time zone.
- Central banks openly declare their intentions and impact trends in the Forex marketplace.
The truth is although there are overall trends to forecast in the marketplace, Forex is a highly volatile market. Like the stock market, Forex markets are ruled predominantly by emotions, perceptions and the reactions to these. There are many cultural differences to be aware of when working with a large span of currencies. A spike in your candlestick chart may be the reaction to a new story in another country, and the ripple may settle by the time the business day has closed in that geographical region.
Take the time to gain an understanding of the market, and analyze reactions. Forex forecasts can be the key to meeting longer-term financial targets, but it’s up to you to choose the best strategy for your needs. Make a plan, set a goal, and monitor your progress in the upcoming weeks and months.
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