5 Things About Online Trading You May Not Have Known
1. The US Dollar is the most actively traded currency. The Euro is the most actively traded counter currency, followed by the Japanese Yen, British Pound and Swiss Franc. Market moves are driven by a combination of Speculation, especially in the short term; Economic Strength and Growth; and Interest Rate Differentials.
2. Speculation is akin to Gambling. Speculators purchase something with the hope that they can soon sell it at a higher price, but without necessarily understanding, or even caring about why the price should go up. Avoid Speculation and Speculators. Depend on Analysis instead and never take your eyes off the charts especially if you are scalp trading.
3. When you buy a share of stock on the Stock Market, you are not buying it from the company, you are buying it from some other existing shareholder. Likewise, when you sell your shares, you do not sell them back to the company, rather you sell them to some other investor.