Forex Charts the Basics You Need To Know
by monica hendrix
Here we are going to give you an introduction to the basics of forex charting and how to use them to successfully catch and hold forex trends for big profits.
Forex markets (or any financial market for that matter) move to this basic equation:
Fundamentals + Investors Perception of them = Market price
The fundamentals are the supply and demand facts and we all see them but being humans we all draw our own subjective judgements on what they mean and we are not just influenced by logic - but the emotions of greed and fear as well.
It's very difficult to trade the fundamentals, because all the facts are instantly known and discounted in the price and of course you never quite know how humans are going to view them.
A basic premise of using forex charts is to simply assume that all fundamentals are instantly discounted in the price and no study of them is needed - while this sounds essentially simple (and it is), it means a chartist is not interested in knowing them - he is only interested in price movement generated by them and investor psychology.
How and where prices move is decided not by the facts or supply and demand situation but is down to how investors as a whole see them, this then becomes the market price.
A basic foundation of forex technical analysis is that history repeats.
Why?
Because human nature is constant it will be reflected in forex charts as repetitive price patterns that can be traded for profit.
In essence forex charts allow us to study the fundamentals and investor psychology all at once - a technical analyst is not interested in how or why prices move - he just studies the charts and wants to make money when they do.
Another foundation of technical analysis is that a trend in motion is likely to persist and the aim is to lock into these trends and hold them for profit.
The fact is anyone with the right forex education can make money using forex charts but it's an art not a science and you need to learn a method based upon sound logic.
Many forex traders base their currency trading systems on trying to predict forex prices but this is wrong.
Why?
Because it's simply another word for hoping and guessing and that won't get you far in any walk of life and that includes forex trading.
Forex charting is a game of odds - not certainties and you need to keep this in mind while chart patterns do repeat they do not move to a scientific theory.
If you want to learn currency trading and be successful then charting is a quick simple and profitable method and takes very little time. You can learn it in a few weeks and you can then cover your currencies daily in around 30 minutes and that's it.
Forex charting basics are enclosed but you will now say - I like the idea how do I use them for profit? That is the subject of part 2 of this article series.
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Showing posts with label Currency Trading Success. Show all posts
Showing posts with label Currency Trading Success. Show all posts
Forex Charts the Basics You Need To Know
Thursday, April 9, 2009 Beginner Forex Trading, Best Forex Brokers, Best Forex System, Currency Trading Success, FOREX Charts
Forex Trading: How To Get Started
Saturday, March 7, 2009 Currency Trading Success, Forex Quote, forex trading, Forex Trading Strategies
Forex Trading: How To Get Started
by Max Haaksman
Have you ever wondered how the Forex market works? Are you curious about becoming a trader, but don't know how to get started? Well, believe it or not, it's very easy and you don't even need any money to get started. Let me introduce you to the world of currency trading.
Forex, or foreign currency exchange, trading can be broken down into several key elements. These include a market, your broker, your broker's trading software, and yourself. In short, you will make decisions, enter them into trading software, and watch the results. It isn't necessary for you to know very much else about your broker at this point.
However, the most important thing to know about your broker is that any money you deposit in your account is protected. Find out where each broker you are considering is located and see if they are required to work with local regulatory agencies. Honestly, the best way to scope out brokers is to find a trading forum and ask others for advice.
Once you have found some candidate brokers that meet your trust and regulatory requirements, then it is time to dig a little deeper. Two things you will want to consider are the features found in their trading software and the cost of entering a trade. Simply download their software, generally referred to as a platform, and start trading with a faux money game account.
The cost of entering a trade is known as the pip spread. Without getting technical, the difference between the market buy price and the market sell price is the spread, expressed in points or pips. The larger this spread then the more the market has to move in your favor for you to make a profit. However, it is certainly appropriate to accept a slightly higher pip spread if you find a broker or trading platform that you really like.
Let me summarize this to show you how simple it really is. Find a broker. Download their trading platform. Open up a free game account. Buy and sell currency pairs in order to get familiar with market movements and your trading platform. Continue using a game account for several months until you have witnessed a wide variety of market activities.
That's it. Now, once you've started trading in a game account, it is time to start visiting some online trading forums and reading everything you can. You'll want to learn about charting, fundamental and technical analysis, stops, limits and plenty of other arcane terms that are actually very simple to learn once you are actively involved in trading.
Finally, don't worry about whether or not you have chosen the best broker, because you'll have plenty of time to move to another. In fact, by the time you are ready to graduate to a live account, you will surely know whether or not your broker's platform offers all of the charting or trading capabilities that you desire. Now, get out there and start trading.
by Max Haaksman
Have you ever wondered how the Forex market works? Are you curious about becoming a trader, but don't know how to get started? Well, believe it or not, it's very easy and you don't even need any money to get started. Let me introduce you to the world of currency trading.
Forex, or foreign currency exchange, trading can be broken down into several key elements. These include a market, your broker, your broker's trading software, and yourself. In short, you will make decisions, enter them into trading software, and watch the results. It isn't necessary for you to know very much else about your broker at this point.
However, the most important thing to know about your broker is that any money you deposit in your account is protected. Find out where each broker you are considering is located and see if they are required to work with local regulatory agencies. Honestly, the best way to scope out brokers is to find a trading forum and ask others for advice.
Once you have found some candidate brokers that meet your trust and regulatory requirements, then it is time to dig a little deeper. Two things you will want to consider are the features found in their trading software and the cost of entering a trade. Simply download their software, generally referred to as a platform, and start trading with a faux money game account.
The cost of entering a trade is known as the pip spread. Without getting technical, the difference between the market buy price and the market sell price is the spread, expressed in points or pips. The larger this spread then the more the market has to move in your favor for you to make a profit. However, it is certainly appropriate to accept a slightly higher pip spread if you find a broker or trading platform that you really like.
Let me summarize this to show you how simple it really is. Find a broker. Download their trading platform. Open up a free game account. Buy and sell currency pairs in order to get familiar with market movements and your trading platform. Continue using a game account for several months until you have witnessed a wide variety of market activities.
That's it. Now, once you've started trading in a game account, it is time to start visiting some online trading forums and reading everything you can. You'll want to learn about charting, fundamental and technical analysis, stops, limits and plenty of other arcane terms that are actually very simple to learn once you are actively involved in trading.
Finally, don't worry about whether or not you have chosen the best broker, because you'll have plenty of time to move to another. In fact, by the time you are ready to graduate to a live account, you will surely know whether or not your broker's platform offers all of the charting or trading capabilities that you desire. Now, get out there and start trading.
Currency Trading Success - A Simple Tip for Bigger Profits
Saturday, February 28, 2009 Bigger Profits, Currency Trading Success
Currency Trading Success - A Simple Tip for Bigger Profits
by kelly price
If you want to enjoy currency trading success then this simple tip will help you. Most currency traders simply do one thing they shouldn't and that's why they lose - so here is the tip.
When trading in currencies always keep this point firmly in mind:
The amount you trade has no bearing on how much money you are going to make so cut your trading and focus on high odds trades and focus on high odds trades.
Most currency traders when they start want to trade and be in on the action - but this means they lose, as the high odds trades don't come around very often.
I know traders who trade 6 - 10 times a year and make over 100% and others who trade all the time and make nothing.
Consider the vast number of traders who day trade and lose.
Why do they lose?
Because all short term moves are random. Sure they have clever systems and work hard but their not trading the odds and a long term trader will win hands down against them in terms of profit.
There is the view that the more effort you put in the more you get out and that's true in many areas of life but not the forex markets.
In forex markets you get paid for being right and that's it.
If you want to win, you have to trade the high odds trades - so what is a high odds trade?
The best way to look for a high odds trade is to look for areas of support and resistance the market considers valid - this means they have been tested several times and these tests have taken place in several different time frames - normally weeks or months apart.
When you look at these levels you are looking to go with breaks of support and resistance and go with the break.
It's a fact that most of the big currency trends start from new market highs or lows and if you don't go with these breaks you will miss some of the best trends.
Most traders can't do this.
Their obsessed with getting in at a lower or better price and wait for the pullback.
It doesn't come and they sit their waiting and wonder what might have been.
The above may sound a simple way to make money and it is - but most traders refuse to do it trade too often on trades with bad odds and lose.
Trading is an odds game and if you want to win you need to trade when the odds are in your favour it's as simple as that.
I would say that you will get a trade like this in forex markets no more than once a month and you get about 10 - 12 really good breakouts a year. Learn to focus on these and you will be trading with the odds in your favour and load up the trade in terms of how much you risk.
Forex trading involves taking calculated risks at the right time and if you trade breakouts that are considered valid you are doing just that.
So if you want to enjoy currency trading success with your trading system trade the high odds breakouts.
by kelly price
If you want to enjoy currency trading success then this simple tip will help you. Most currency traders simply do one thing they shouldn't and that's why they lose - so here is the tip.
When trading in currencies always keep this point firmly in mind:
The amount you trade has no bearing on how much money you are going to make so cut your trading and focus on high odds trades and focus on high odds trades.
Most currency traders when they start want to trade and be in on the action - but this means they lose, as the high odds trades don't come around very often.
I know traders who trade 6 - 10 times a year and make over 100% and others who trade all the time and make nothing.
Consider the vast number of traders who day trade and lose.
Why do they lose?
Because all short term moves are random. Sure they have clever systems and work hard but their not trading the odds and a long term trader will win hands down against them in terms of profit.
There is the view that the more effort you put in the more you get out and that's true in many areas of life but not the forex markets.
In forex markets you get paid for being right and that's it.
If you want to win, you have to trade the high odds trades - so what is a high odds trade?
The best way to look for a high odds trade is to look for areas of support and resistance the market considers valid - this means they have been tested several times and these tests have taken place in several different time frames - normally weeks or months apart.
When you look at these levels you are looking to go with breaks of support and resistance and go with the break.
It's a fact that most of the big currency trends start from new market highs or lows and if you don't go with these breaks you will miss some of the best trends.
Most traders can't do this.
Their obsessed with getting in at a lower or better price and wait for the pullback.
It doesn't come and they sit their waiting and wonder what might have been.
The above may sound a simple way to make money and it is - but most traders refuse to do it trade too often on trades with bad odds and lose.
Trading is an odds game and if you want to win you need to trade when the odds are in your favour it's as simple as that.
I would say that you will get a trade like this in forex markets no more than once a month and you get about 10 - 12 really good breakouts a year. Learn to focus on these and you will be trading with the odds in your favour and load up the trade in terms of how much you risk.
Forex trading involves taking calculated risks at the right time and if you trade breakouts that are considered valid you are doing just that.
So if you want to enjoy currency trading success with your trading system trade the high odds breakouts.
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