This charge results from the difference between the interest rates of the two currencies. 2 works in a relatively spare and simple office space, uses just a regular laptop or notebook computer, and an examination of his charts reveal just one or two – perhaps three at most – technical indicators overlaid on the market’s price action. There is virtually an endless number of possible lines of technical analysis that a trader can apply to a chart. His simple market analysis requires nothing more than an ordinary candlestick chart. His trading strategy is to trade high-probability candlestick patterns – such as pin bars (also known as the hammer or shooting star patterns) – that form at or near support and resistance price levels that are identified simply by looking at the market’s previous price movement. For example, if the 10-period, 50-period, and 100-period moving average all converge at the same price level, that should provide substantial support or resistance for a market, because you’ll have the actions of traders who are basing their trading off any one of those moving averages all acting together. Why is playing great defense – i.e., preserving your trading capital – so critically important in forex trading? Why do you think that over 95% of traders lose money? Paul Tudor Jones is not the only market wizard to counsel traders to utilize an approach to trading that basically consists of, “Just avoid losing all your money until a trading opportunity comes around that is somewhat akin to having a million dollars dumped on the ground in front of you, and all you have to do is pick it up.” No, trading opportunities like that don’t happen every day – but they do happen regularly, and more often than you might imagine. No less a trading wizard than the great Paul Tudor Jones, creator of the hugely successful hedge fund, the Tudor Corporation, has flatly stated that “The most important rule of trading is to play great defense.” (By the way, لینک Tudor Jones is an excellent trader to study and learn from. Even if you are far from being “the world’s greatest trader,” the luck of the draw, if nothing else, will have you eventually stumble into a trade that produces more than enough profit to make your year – or possibly even your whole trading career – a massively profitable success.