People love slang and nicknames, and forex traders are people too.
If you’re new to forex, you may have noticed that there are a lot of unusual terms to wrap your mind around. Normally, if a person talks about watching candlesticks all day or riding the bull rally, you’d quietly nod and edge away before the drugs wear off. In the world of forex, however, candlesticks and bulls are far from the weirdest vocabulary.
"If you’re having troubles making decisions, maybe you should try trading naked."
This guy is a straight up sex offender or he’s trying to get you to join a nudist club. His trading station is probably next to a bedroom with a circular bed with red satin sheets and his neighbors are always leaving notes asking him to pull the blinds down. You make a mental note to never, ever sit on a chair he’s used unless you are protected by a wet suit.
Simplify your charts. If you are like most first time traders, you’ve got way too many indicators cluttering up the chart. Trading naked is about choosing a few (usually 2-3) indicators to avoid getting overwhelmed. Trading naked can actually improve your trading. Whether you wear clothes or not is up to you.
"Don’t waste your time with all that financial porn."
How did you know?? Wait… financial?
Financial porn is the non-stop flow of information, analysis and opinion that comes through business channel on the TV and many, many websites that churn out content whenever a currency pair moves. Like too many indicators, too much information can hinder you more than it helps. Getting too caught up in what is happening makes it difficult to separate out the important information.
"The Mrs. Watanabes are pushing down the Australian dollar."
Mrs. Watanabes is a nickname given to Japanese housewives who took up forex trading. Japanese bonds and other traditional investments have returned next to nothing since the bubble burst there in 1991, so many Japanese investors (women and men) took up forex trading to make more money. Watanabe is a common surname much like Smith is in North America.
"I never touch the Swissy, Loonie, Cable or Kiwi - it’s the euro and dollar for me."
Can you just speak English?
Swissy is the Swiss franc. Loonie is the Canadian dollar (it has a loon on it). Cable is the pound to U.S. dollar (undersea cables connected the U.S. and U.K). Kiwi is the New Zealand dollar. There is no reason for the nicknames other than people - including traders - love nicknames. This is the reason why so many chart formations have nicknames (three black crows, head and shoulders, etc.).
Although these are some of the more outlandish terms in regular use, there are many, many more. A new trader may blow up his account, undergo a baptism of fire, check the Big Mac PPP and on and on. Learning the lingo is relatively easy compared to learning how to trade successfully, but both are goals worth having.
Forex Trading for Beginners
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Andrew Beattie has spent most of his career writing, editing and managing financial content as well as more general web site material in all its many forms. He is especially interested in the future of search and the application of analytics to the business world. He has been a long-time contributor to Investopedia.com and is currently venturing forth on ForexDictionary. Full Bio
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