Forex Investment and Currency Trading

1913 – U.S. Congress creates the Federal Reserve System.
1933 – Congress passes the Securities Act of 1933 to counter the effects of the Great Crash of 1929.
1934 – The Securities Exchange Act of 1934 creates the beginning of the Securities and Exchange Commission.
1936 – The Commodity Exchange Act is enacted in direct response to manipulating grain and futures markets.
1944 – The Bretton Woods Accord is established to help stabilize the global economy after World War II.
1971 – The Smithsonian Agreements is established to allow for a greater fluctuation band for currencies.
1972 – The European Joint Float is established as the [...]

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Technical themes are perhaps a little harder to grasp than fundamental themes, especially if you’re not familiar with technical analysis. But to make a long story short, sometimes currency prices move simply because currency prices are moving.
The economic or political fundamental themes may not have changed dramatically, but price levels have, and that is frequently enough to bring major market interest out of the woodwork.
In most cases, breaks of major technical or price levels will be in the direction suggested by the prevailing fundamental themes, but the timing is often suspect and can leave traders scratching their heads, asking what [...]

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It’s one thing to speculate in the market and get the direction wrong. That’s good old-fashioned risk-taking, and it’s just part of the business of trading. But it’s another result entirely to get the direction right and still lose money, or not make as much as you could have, or not keep as much as you’d already made.
Most traders can readily accept the idea of getting the direction wrong. They shrug it off and get back to work in short order. But take a trader with a winning position in the morning that goes south in the afternoon, and you’re [...]

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Any number of real-world forces at work in the forex market at any given moment – economic data, interest rate decisions, and geopolitical events, to name just a few. And they all get filtered through the market’s collective consciousness and translated into price movements.
As currency traders, we’re focused on trying to make money based those price movements, but we’re not alone. A whole raft of participants is active in the currency market, and they’re all analyzing the same news and data, and drawing differing conclusions. To add yet another dimension, they’re making trades based on those conclusions, which is what [...]

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