Forex currency trading is not that easy, all FX traders before they enter this business, they think that they'll be rich quickly and make $20 000 in a single or two weeks, however when they begin trading currencies they discover it is not true, it is not easy to earn money especially when we work with money. Very tricky business, many of us think that there is a conspiracy planned by "THE BIG GUYS", they know what we think what we expect to do plus they do the opposite to steel our money, often we believe to make the opposite in our decision (if I see the market is going up i quickly will sell). And we begin searching for someone to allow us to making a minimum of 200 or 300 pips a month, probably a lot of us work with signals advisors who simply took our money and in all likelihood do not help us making decent profit. Many of us thought stop trading a lot of us quit Foreign exchange trading however i think the majority of us will not quit easily because we see inside it a golden opportunity to possess our very own business and make our fortune!
Foreign exchange is an chance to make a fortune and in same time it is definitely an opportunity to loose our money, we can create a fortune as we knew how to handle Forex, as we have no idea how to control Forex it will destroy us, so we should be stronger than it, and if we do not understand how to manage it with our own hands it'll destroy us too. So how I can be stronger than this ferocious beast? It is simply by learning, observing, and practicing. The FX market will not go anywhere it will be trending and ranging for ever, so learn from experienced traders the way they became that good, observe charts and look for common points search for the reason why the cost change direction, so when you discover the reason which influence a currency you will have in your hand the first tool that provides you control. And every new thing you find, try it on the demo account, find out if it's valid and develop it. In this Forex article I'm allowing you to find your way, this Forex article does not provide you with the fish but it shows you fishing. There isn't any conspiracy theory within this business, no big or small guys, we loose because we don't know, and the very first thing we should caused by become good traders is to admit that people don't know and we must always learn.
In this Forex Article I will give some clues and I will make you learn, observe and practice.
Initially you must know that you need to use fundamental and technical analysis in conjunction, both complete each others, so don't rely on one and leave the other. Fundamental is among the reasons which influence the marketplace, so if you are in a long trade and suddenly the trading currency transpired so go and find out if a report was launched and find out what its forecast and that which was the released data and compare this data for your chart and you will have the first tool to control your company.
Second, in my opinion all the technical indicators didn't assist me to whatsoever, I attempted all the combinations nothing work, and indicators describe the status of the market but don't provide you with information about the following direction. I read a Forex article in regards to a guy who describes his Forex currency trading strategy inside a Forex article, I had been completely lost, he makes use of a mix of 12 indicators EMA340, SEMA890, EMA2900 etc: and he inserted FIBONACCI in it. I was totally lost. Even when his strategy worth 95% success I will not use it because I'm able to control the market by utilizing simpler techniques. Therefore we don't have to seek indicators, just one indicator I personally use the Bollinger Bands the perfect weapon in my battle against Forex currency trading. And so i would like you to look at the Bollinger Bands and find out the way it affects a currency, concentrate on it and browse well this Forex article and you'll discover a lot of things, and you will have your second tool.
Third, suppose you are in a long trade and suddenly for no reason the Forex Trading price went down, there aren't any released reports it simply turned down, this is weird. But weird things are those we don't understand, but if you find your chart and go back several hours or days and drop a break line from higher swing points you will find that the cost turns down since it reached that break line, you see there isn't any mystery. Which means this break line will probably be your Resistance and if price breaks it, it will continue going up, but going where and till when? Observe very carefully and you will learn as I did. And no requirement for midnight or afternoon candles, be simple as you can, that beast isn't as ferocious as you think. So breakout is your third tool.
Fourth, what timeframe to make use of, it's your decision to choose the suitable timeframe, H1, H4, D1: I don't know, compare the charts and you'll begin to see the suitable timeframe. Timeframe is important so when you find it you will have your Fourth tool.
And that's it, I repeat observe your charts and focus and think during these clues in this Forex article and the more you believe the more you discover, read Forex article, learn strategies and get foreign exchange books.
I do good profit from my Forex trading strategy because I program it, I gave my system the information and then leave it perform. This eliminates the fear factor and gave me additional time to go out and have fun.
I really hope this Forex Article gave some suggestions and techniques that really help traders in their Foreign Exchange trades.