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How do Banks Create Money

How do banks create money? Out of thin air

Understanding how money is created, by both banks and governments, and then distributed into the economy are key areas to have an understanding of if you wish to become successful at trading in the foreign exchange markets. Traders are obsessed with money (at least I certainly am, you?) and it’s useful to know how banks create it. Fractional reserve banking is the form of...
How Money Is Created...

Trading without indicators: Top gun or a bit dumb?

For the majority of individuals trading in the stock markets, each has his, or her own set of preferences when it comes to the technical indicators and drawings which they will place onto a chart. Whether a trader favors watching the moving volume weighted average price (MVAWP), Bollinger Bands, or simply drawing...
How Effective Are Naked Charts...
Efficient Market Hypothesis

Efficient market hypothesis: Why traders hate it!

Efficient Market Hypothesis is a concept many traders don’t like the idea of since it’s premise centers around the fact that charting information, publicly available information, and even insider knowledge cannot be used to outsmart the markets. There are three varying weight levels to this hypothesis, all with the underlying characteristic that the price of a stock always...
EMH Explained...