Richard Olsen is CEO of OANDA
Richard Olsen is CEO of OANDA

Informed Trading Decisions the key to success for retail traders

First Published: e-Forex Magazine 12 / Viewpoint / October, 2003

The EUR-USD exchange rate shoots up by 100 basis points after the release of disappointing labour market data. Trader Harry is short EUROs. Just prior to the news announcement, he opened his position and was convinced that the rally of the USD would continue and be supported by positive labour market data. This month’s trading was profitable, but within literally 10 minutes his profit has slipped away. Should he close out his position at a loss or hang on to it?Professional traders are used to this. They know that the markets are erratic and that it is important to be on the continuous lookout. At any time, the unthinkable might occur. Professional traders have developed a broad array of tools that provide them with valuable background information and put price movements into a broader perspective. The tools fall into three broad categories. There are the technical indicators that are used to evaluate market movements. The second category is market information on positions and pending limit orders....continued

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