January 23rd, 2008

Forex Trading - Using Greed And Fear To Your Advantage For Huge Profits

To succeed at forex trading you need to understand greed and fear and why it makes most traders lose. Learn to sell greed and buy fear and you can catch some great high return, low risk trades - while the majority lose.

First let’s start with a simple equation which in forex trading gives us price

Fundamentals + Investor Psychology = Price

Let’s look at this simple equation in more detail

In forex trading prices move in line with the long term fundamentals over time – that’s why you see currencies trend for months or years, as they ultimately reflect the underlying health of the economy.


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