War between two Currencies

Worldwide Forex is the largest and liquid market. Daily having a huge volume of $3 trillion Dollars, no market is there globally, which can beat its volume. Being 5 days a week and 24-hour market, Forex is an OTC (Over-The-Counter) market. It is very easy to enter the Forex market. One can open an account with less than $200 and can enjoy 100:1 high leverage or more than it can. (Leverage is a double-edged sward), to use leverage one should have a proper knowledge of risk management. Leverage with high degree might lead you towards losses as well as gains. Many people think that this is a platform for making big money in a short span of time. Unfortunately, the reality of Forex market is different, but the attraction is high. In Forex market, there are such people who have lost their money in a short span of time. It is not an easy task to make money in Forex market.

For being, a successful trader one should be disciplined and have good knowledge. Before you starting trading, risk management, money management, technical analysis and the fundamentals, you must have the knowledge of all.

The traders can be categorized in two ways mechanical and discretional. A mechanical trader is that who sets some strict rules for the customers with him/her and remains with them all the time. A discretional trader is that, who during the time of trading considers his/her judgment power.

Mechanical Approach: Mechanical approach is that in which one can estimate the likelihood of the success achieved. Correct decisions shall be made based on the likelihood.

Discretional Trader: Discretional trader is that who does not have any clear evaluation of his/her success. In short- term trade discretional trader can be a successful trader but in the long-term trade mechanical trader, would be considered successful as he wins the most. Some exceptions might be there in general mechanical trading is the right way to go.

Computer is the mechanical trader. A highly disciplined manual mechanical trader is not free from 100% discretion. If trades left to your computers, it does not follow rules set by you. A computer cannot set trading rules because it is a machine. For making the computerized trading experience successful, the trader has to define the rules to the computer.