Trading - Time Value of Money

 Trading Forex is a Minus Zero-Sum Game.   A zero-sum game is a concept in game theory where the total amount of wealth, resources, or value remains constant. In this type of game, any gain by one participant is offset by a loss from another. In trading, particularly in markets like Forex, it is often considered a zero-sum game because for one trader to make a profit, another trader has to incur a loss, keeping the overall value unchanged. The total amount of money being exchanged remains the same; it simply shifts from one participant to another. However, in minus zero-sum games, the situation is slightly different. Not only must one party lose for another to win, but there are additional costs or factors that create an overall net loss in the system. In trading, this is often the case because brokers or other intermediaries charge fees, commissions, or spreads, which reduce the overall amount of profit in the system. These costs mean that even if you make a profit, you m...

Automate Entry and Exit Points by Tom Pending orders are a powerful tool in Forex trading, allowing traders to automate entry and exit points without constant monitoring of the market. These orders let you set predefined conditions under which trades are executed, helping you maintain discipline and focus. There are four main types of pending orders: Buy Stop : This order triggers a buy trade when the price rises to a specified level. It's used when you anticipate that an upward trend will continue after breaking a resistance level. Sell Stop : This order triggers a sell trade when the price falls to a specified level. It's ideal for scenarios where you expect a downward trend to gain momentum after breaking a support level. Buy Limit : This order allows you to buy at a lower price than the current market level. It's useful when you predict a retracement before the price resumes an upward trend. Sell Limit : This order lets you sell at a higher price than the current market...

Forex is not a Traditional Job. By Tom Not a 9-to-5 Job For newcomers to Forex trading, it’s important to recognize that Forex trading as an investment style, approached with a business mindset, is not a traditional job. It doesn’t provide a fixed monthly salary, follow a 9-to-5 schedule, or resemble the conventional work norms most people are accustomed to. Forex trading as an investment requires time to master. While it is not inherently difficult, it is complex. Many people fail because they don’t start with the right foundation. Learning the wrong principles early on can be hard to correct later, especially when it comes to critical aspects like money management. As a Forex trader or investor, maintaining exceptional discipline in financial matters is non-negotiable. Some months, you might experience incredible success, earning significant profits—even millions. However, the reality of trading also includes periods of drawdown, which are rarely discussed openly. The Drawdown A draw...