Behavioral economics involves the study of human decisions. The principles of behavioral economics include incentives, motivations, social influences, risk, and time and planning. In addition, it explores the impact of personality, emotions, and time management. These factors can affect the foreign exchange rate in a variety of ways. Here are five major themes of behavioral…
Month: August 2022
Things to Learn from Top Forex Traders
If you’d like to make money on the forex market, here are some of the things that top forex traders know. Read on to discover more about price action, technical analysis, Trading pairs, and identifying trends. Once you’ve read this article, you should be well on your way to becoming a forex millionaire! You may…
Why You Should Trade the Minors
Before we go ahead to delve into the attributes of why you should trade the minors, it is imperative to first know why the whales don’t trade these markets. Although the liquidity is higher in major trading sessions, anyone can participate in trading these minor currency pairs. What you should worry about are low spreads,…
Forex Hedging Strategies for Forex Traders
Forex hedging strategies are an important part of successful trading. They involve dealing with multiple currency pairs and understanding their correlations. To achieve successful forex trading, you must know how to offset the movement of all currency pairs. Forex hedging strategies are best suited for highly experienced traders who understand the importance of risk management….
Factors to Consider When Predicting Your Trading Risk Tolerance
In a nutshell, risk tolerance refers to the amount of uncertainty an investor is willing to tolerate. While it is exciting to take a chance on the big gain, trading with risk also means accepting possible losses and the inability to predict what might happen next. There are many factors to consider when predicting your…
How to Avoid the Disposition Effect in Trading?
The Disposition Effect is one of the most perplexing aspects of trading. This article will cover its causes, the impact on investment performance, and how to overcome this effect. By treating the markets logically, you can reduce its effect and maximize your profits. The following tips will help you neglect the Disposition Effect and continue…