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Showing results for tags 'pips'.
Found 3 results
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There are so many novice traders who get introduced into the "Forex world" and they hear about all the money you can make in this profession, but after 6 months, a year, or maybe even 2 years if you a persistent, they give up trying to master the markets because they say its impossible or too hard, does this sound familiar? Sadly i hear about this far too often...I am a piano instructor, and lesson after lesson i hear "Teacher, i'm so excited, i practiced for 8 hours this week!" only to be disappointed because the piece sounded exactly as it did last week. The students weren't lying, they did indeed play the piano for hours, just like they told me, notice how i changed the word from "practiced" the piano, to "played" the piano? Just changing a single word, can have a huge impact on its meaning. To PLAY the piano is something i do for enjoyment, just pleasure for myself or for others, not planning on improving much of my performance during this period, but to PRACTICE the piano, to practice is to take your time, go slowly, look at the bigger picture, fine tune the timing, the finger positioning, the accents, dynamics, muscle control, muscle movement, taking a step forward in your skill/performance level by improving something that will better you as a pianist. This can be directly related to trading, people think that if they make tons of trades, they are gaining "experience" yes and no, you do need to make trades, and get the feeling of what making trades is like, watching the market unfold against you or for you, BUT taking trades alone, wont give you the experience needed to one day have the financial freedom we all ache for. There is a saying that practice makes perfect, but i think PERFECT practice makes perfect. Anyone can learn to have financial freedom from the markets, but it takes time, dedication, and will. Take the time to get the knowledge needed, PRACTICE and apply this knowledge on the market, and then start building up your experience. There are no short cuts in this field, but take one small bite at a time, and eventually those bites will get smaller and smaller and smaller. Go make some pips!
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Since currency pair often move is impulses of 5 or 10 , traders use the term Nickel to describe one of these smaller movements. This kind of terminology tends to be seen in short term trading situations as investors discuss intraday developments.
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I am interested in the mechanics of the forex market. Questions every new trader should be asking: What moves the the market? Yes, yes, I have heard all the pat answers. But they are all cliches. Does anyone really know? Where do those pretty lines and numbers come from? Yes, yes, I know they come from the liquidity provider. But where does the liquidity provider get them? He does not just make them up. Are there really people somewhere bidding and asking? Can I go there and watch them? I am sure that the big banks, hedge fund managers, and financial institutions cause most of the activity. OK. So what are they trying to do? Are they acting or reacting? Are they watching the same charts I am? Are their motives different from mine? Are they trying to accomplish something more that just making a profit? Why would a trader care if the price went up or down? I certainly do not care. I quickly change sides whenever the trend changes. Often I have several open trades; some long, some short. Can you give me an example of a trader who actively and aggressively wishes the price would go up or down? (Before he enters a trade, of course.) Hmmm! I just watched a gap up of 40 pips. Who pushed the buttons to make that gap appear on my screen? Whoever it was, has a different trading platform than I do. I do not see any provision on my platform where I can create a gap up or down. I am assuming that a human created that gap, or am I trading against a computer? I have got to know who is on the other side of my computer screen. Wow! I just saw the spread jump to 20 pips. Who decided that it ought to be that great? What is his name? Where does he live? Who gave him permission to widen the spread? Are there really mystical bears fighting with a heard of bulls to lower the price of their favorite currency? Or is this just a myth like Santa Clause? Let's pretend there really are bulls and bears. My question is; why do they care? What are they fighting for? And if the bulls manage to raise the price a few pips, how did they do it? Until I understand why the bears are trying to drive prices down and why the bulls are frantically trying to elevate prices, I have no business in this battle. I will get killed in the cross fire. Any hope of success depends on some real answers, not just bull.
