Learn How To Day Trade Forex
You should learn to day trade forex. But before you embark on your journey of forex trading, I want to make a few facts very clear. These facts should be the foundation of any forex trading system that you develop and use daily for trading.
The first most important thing that you should understand and make very clear is that forex is not a get rich quick scheme. Skilled currency traders can and in fact do make good money in forex trading. However like any other business or career, success just doesnt happen overnight or in a few weeks. You should use this great formula for success: Patience+Practice+Persistence=Profits.
You should know that there is no substitute for hard work and diligence. Practice trading on a demo account. Pretend that virtual money is your own real money when you trade on the demo account. Do not open a live trading account until you become profitable on your demo account. Double you account first demo trading. You can only be successful if you stick to a system and a plan.
When you start forex trading, in the beginning just choose two major currency pairs that you will trade. It becomes very difficult to keep tab on the all major currency pairs. You should start with a major currency pair because the spread on the major pairs is the best and they are the most liquid. EURUSD pair is the most commonly traded pair. It usually has the best spread because of its liquidity.
USDCHF is the most volatile pair among the major pair. It moves the most during the trading week. USDJPY moves a lot on the news out of Japan. GBPUSD is the most stable among the major currency pairs.
You should follow and understand the daily forex news and analysis of the professional currency analyst. It is important for you to get a birds eye view of the currency markets and the news that affects the prices of the major pair that you want to trade. You should also know and understand what the key technical support and resistance levels are in the currency pair that you want to trade.
Support is the predicted level when buying pressure overcomes the selling pressure. It is at this point the currency pair moves up on the charts. Buy at the support level. Resistance is the predicted level when selling pressure overcomes the buying pressure. It is where the currency pair moves down on the charts. Sell on the resistance level.
All the best forex news and analysis is available freely online. Most of the forex brokers provide this information on daily basis if you open an account with them. You should subscribe to an independent service as well. You can also go to forexnews.com and get 24 hrs news and analysis on the spot forex market free daily. Read the technical news and analysis. Write down on a piece of paper the direction the analyst is saying about the currency pair you are trading. Also note the key support and resistance level for that pair.
Learn how to use technical indicators and always trade with stop losses. It is worth your time to be patient and learn how to use technical indicators on the charts that you will be reading shortly.
It is important for you when you are trading to be disciplined. Avoid emotions! Stick to a system and a plan. Dont just try to trade your gut feeling. Depending on your risk appetite and strategy, set your stop losses accordingly when you trade. - 23196
The first most important thing that you should understand and make very clear is that forex is not a get rich quick scheme. Skilled currency traders can and in fact do make good money in forex trading. However like any other business or career, success just doesnt happen overnight or in a few weeks. You should use this great formula for success: Patience+Practice+Persistence=Profits.
You should know that there is no substitute for hard work and diligence. Practice trading on a demo account. Pretend that virtual money is your own real money when you trade on the demo account. Do not open a live trading account until you become profitable on your demo account. Double you account first demo trading. You can only be successful if you stick to a system and a plan.
When you start forex trading, in the beginning just choose two major currency pairs that you will trade. It becomes very difficult to keep tab on the all major currency pairs. You should start with a major currency pair because the spread on the major pairs is the best and they are the most liquid. EURUSD pair is the most commonly traded pair. It usually has the best spread because of its liquidity.
USDCHF is the most volatile pair among the major pair. It moves the most during the trading week. USDJPY moves a lot on the news out of Japan. GBPUSD is the most stable among the major currency pairs.
You should follow and understand the daily forex news and analysis of the professional currency analyst. It is important for you to get a birds eye view of the currency markets and the news that affects the prices of the major pair that you want to trade. You should also know and understand what the key technical support and resistance levels are in the currency pair that you want to trade.
Support is the predicted level when buying pressure overcomes the selling pressure. It is at this point the currency pair moves up on the charts. Buy at the support level. Resistance is the predicted level when selling pressure overcomes the buying pressure. It is where the currency pair moves down on the charts. Sell on the resistance level.
All the best forex news and analysis is available freely online. Most of the forex brokers provide this information on daily basis if you open an account with them. You should subscribe to an independent service as well. You can also go to forexnews.com and get 24 hrs news and analysis on the spot forex market free daily. Read the technical news and analysis. Write down on a piece of paper the direction the analyst is saying about the currency pair you are trading. Also note the key support and resistance level for that pair.
Learn how to use technical indicators and always trade with stop losses. It is worth your time to be patient and learn how to use technical indicators on the charts that you will be reading shortly.
It is important for you when you are trading to be disciplined. Avoid emotions! Stick to a system and a plan. Dont just try to trade your gut feeling. Depending on your risk appetite and strategy, set your stop losses accordingly when you trade. - 23196
About the Author:
Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in day trading and swing trading stocks and currencies. Discover A Revolutionary New Forex Robot. Develop your own Forex Trading System.
posted by X - Men @ 2:31 AM
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