The theory basically means that the reoccurring movement of the forex Market known as waves. These waves show different stages of a cycle which you can use to understand the market better. In the long run, you can even use this knowledge in order to predict what will happen tomorrow.



That is all you have to do and you will be rich tomorrow, NOT. Look, if it was easy, you know what, everybody would doing it. Let me ask you a few questions to help you determine if you're ready for this jump into the big time. Are you a disciplined and determined person? Are you willing to pay the price for success in effort? Are you the type that refuses to fail at any undertaking they attempt?



Federal governments and central banks play major role in currency exchange. These two are like dancing couple, making extravagant moves along the forex market hand in hand. Government representatives meet up with Central Banks representatives regularly to discuss the money issues. And even if others may argue, federal governments and central banks always seem to be in agreement with each other. After all, these forex players are able to manipulate forex market in order to meet any kind of economic agenda.



Most traders don't trade breakouts, because they want to be perfect and predict market bottoms and tops but this cannot be done. Prediction is hoping or guessing and you won't win at Forex doing that!



Some people would rather trade directly with a party they have found rather than coursing the entire deal through a middleman. Though this may seem like an easier route to take, it is not really advisable for beginner forex trading.



At any time, a certain economic issue can occur and when it does it will indeed effect the foreign exchange markets. Finance experts release reports about that very thing, and usually these reports will contain; the country's gross domestic product, national debt statements, inflation, employment levels and trade deficits. When these reports are released you'll see a lot of volatility in the forex markets for a certain amount of time.



Forex robots become your trading butler. Best of all they don't expect to be paid overtime, they don't need to sleep and they don't need food or water. Once set up, a trading robot allows you to extract profits from this huge market continuously around the clock. Because of their awesome calculating capability. they excel in very short frames. This would be impossible for the time constrained home trader. Robots also have the time to monitor trades across a variety of currencies in all time zones.