Learn To Trade Forex
Learning forex trading should not be difficult. With decent understanding of money management rules and a good trading strategy, you should be ready for conquering the forex markets.
Always try to understand the big picture. You should start each trading session by looking at the daily charts and than zooming into 4hr, 1hr, 30min, 15 min etc charts. Forex trading is all about interpreting the past as well as about interpreting the future.
You need to ask: Is the market ranging or trending before each trade. You should ask: Is there any long term patterns that have developed. By taking a general look at the different charts you will develop a general understanding of how the forex markets are behaving in the short as well as the long term.
Figuring out the general direction of the currency markets is easy. Candlestick analysis and moving averages are a good way to identify long term patterns and reversals.
You can use the Bollinger bands applied to 4hr charts to identify the daily trading range. A daily trading range shows you where the vast majority of moves are expected to happen. Any moves outside the daily trading range can be viewed as short term abnormalities.
You need to do some scenario planning for each day, once you have a general overview of the market for that day. You should know what fundamental news is scheduled to be released for that day and how the markets are expected to react.
Understanding the big picture does not mean knowing the whole picture. You should only focus on your favorite pairs. It takes a longtime and effort to understand a currencys behavior, how it reacts to things like oil prices, interest rates etc. So concentrate only on a few pairs in forex trading.
Always try to take notes and keep a daily trading journal in which start by analyzing the general direction of the markets for that day. What is your thinking about how the markets are going to react to different news that is expected to be released that day? Your entry and exit for the trade. What is your expected profit?
After each trade, look at what went wrong and how to avoid it in future trading! In case of a good trade that made you pips, analyze how many pips you could have made more and how to tweak your trading strategy for better results in the future trades.
Keep these general tips in mind while you are learning forex trading. Always remember never ever trade without stop losses and practice on the demo account for at least three months. - 23162
Always try to understand the big picture. You should start each trading session by looking at the daily charts and than zooming into 4hr, 1hr, 30min, 15 min etc charts. Forex trading is all about interpreting the past as well as about interpreting the future.
You need to ask: Is the market ranging or trending before each trade. You should ask: Is there any long term patterns that have developed. By taking a general look at the different charts you will develop a general understanding of how the forex markets are behaving in the short as well as the long term.
Figuring out the general direction of the currency markets is easy. Candlestick analysis and moving averages are a good way to identify long term patterns and reversals.
You can use the Bollinger bands applied to 4hr charts to identify the daily trading range. A daily trading range shows you where the vast majority of moves are expected to happen. Any moves outside the daily trading range can be viewed as short term abnormalities.
You need to do some scenario planning for each day, once you have a general overview of the market for that day. You should know what fundamental news is scheduled to be released for that day and how the markets are expected to react.
Understanding the big picture does not mean knowing the whole picture. You should only focus on your favorite pairs. It takes a longtime and effort to understand a currencys behavior, how it reacts to things like oil prices, interest rates etc. So concentrate only on a few pairs in forex trading.
Always try to take notes and keep a daily trading journal in which start by analyzing the general direction of the markets for that day. What is your thinking about how the markets are going to react to different news that is expected to be released that day? Your entry and exit for the trade. What is your expected profit?
After each trade, look at what went wrong and how to avoid it in future trading! In case of a good trade that made you pips, analyze how many pips you could have made more and how to tweak your trading strategy for better results in the future trades.
Keep these general tips in mind while you are learning forex trading. Always remember never ever trade without stop losses and practice on the demo account for at least three months. - 23162
About the Author:
Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in day trading and swing trading stocks and currencies. Learn Forex Nitty Gritty. Read about Trend Forex System. Try Netpicks Forex Signal Service.
posted by X - Men @ 1:45 AM
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