Basic principles Strategies for forex trading
To trade successfully is not easy. What you need is time, market knowledge, market understanding, a trading strategy and a large dose of self-control. Swissquote Bank SA does not manage accounts and does not provide market advice. This take on investment managers and broker intermediary, called Introducing Brokers. As market experts, we can but in the right direction, we will explain what meaningful trade strategies and considerations and what is bad advice.
Anyone who says that when you can make money currency trading always tells the truth. The forex market is inherently volatile, so volatile. When Internet-based currency trading on margin, this volatility increases exponentially. One speaks in this context of a very 'fast market' which naturally develops unstable. According to this principle, it is clear that a merchant account for a profitable transaction both technical and fundamental data chart and then can be taken on the basis of its market assessment and expectations make an informed decision. The timing of a transaction is crucial for the commercial success and the most important variable. But a trader can not prevent that from time to time, his timing proved false. You should not expect to achieve a profit on each transaction.
Here are some basic principles in order to maximize the chances of a successful transaction:
Take action against amounts you can afford to loss you
Trading on the forex markets is speculative and may result in losses. It is also interesting, exciting and can be addictive. The more you deal with your money, the harder it is for decisions to keep a clear head. Your earned money is precious. But with the money you need to survive, you should never act.
Keep up with the market development to date
What is the market? He tends upward, downward, or in a trading range? The trend is pronounced or weak, and he has used some time ago or is he just out? To gain an accurate picture of the market situation, the basic prerequisite for a successful transaction dar.
Determine the relevant trading period for you
Many traders get on the market without having to be aware of when they want to get out again. Finally, one wants to make money. That is probably true. But when trading you must understand the price action you would expect, in the mind's eye. Thus we have already determined the price movement during a period anticipated and implicitly set an exit price. The important thing is to put your transaction in relation to mentally. While it is impossible to know exactly when you get out on the market. However, you must determine from the outset, whether you operate so-called scalping (ie use the smallest price movement), on a trading day can be active or would like to accept long-term positions. So decides, ultimately, what chart period you is relevant. If you make multiple transactions on the same day, it is pointless to use the technical chart analysis, the daily chart. Chart clippings over a period of 30 minutes or an hour, might be helpful. Good to know is, get off at which time the various financial centers in the trade in and out, as this may affect the rates and can increase the volatility and liquidity either or fall.
Choose the right time for your transaction
It may happen that a certain price movement while correctly anticipate, enter the position too early or too late. When timing play two factors: one is known in advance the publication of data such as consumer prices, retail sales or the interest rate decision by the U.S. central bank strengthen an already existing course trend. The timing means then to know what is expected on the market, and to include all the resulting consequences. On the other hand, you can determine from chart technical analysis, take place when and at what price a move could. On the technical analysis will be discussed in more detail.
Wait in case of doubts
Are you unsure about a transaction and hesitant, then you wait.
Transaction sizes
The foreign exchange margin trading gives the trader a very high degree of leverage. Exploring the use of margin (at Swissquote Bank SA 1%) can lead to very large gains or losses on an account. General is to advise the graduation of transactions, so that a re-entry into the market or trading is possible with other currencies. In short, you do not trade amounts that can potentially mean the end for you and not put everything on one card.
Estimate from the market sentiment
With market sentiment refers to the mood, the most in the market about the market and therefore there is about its current and future development. Basically, it comes to trends. Perhaps you know the saying "the trend is your friend." Specifically, this means that if you have misjudged the direction of development correctly, your transactions will generate profits. But this is certainly a very simplistic view of things can be reversed trends but at any time. Based on technical and fundamental data, however, can detect whether a trend has begun long ago and whether it is pronounced or weak.
Market Expectations
The term refers to the market expectation of the majority opinion among market participants about upcoming releases. If a rate hike is widely expected and actually arrives, it usually causes no major price movements, as the message the market is already "priced in", ie was anticipated. If, however, the opposite occurs, the markets often react with distinctive Kursauschlägen.
Use the same tools as other traders
Under ideal conditions all dealers base their decisions on the basis of a 14-day RSI (Relative Strength Index) would meet. If this were the case, then all would buy if the RSI falls below the mark of 30, and the price would rise. Ideally, the conditions are, unfortunately, but never, not all market participants follow the same technical indicators, draw trend lines and the same locations at the same points of support or resistance levels. The great diversity of opinions and methods of trading leads automatically to different courses. Nevertheless, the dealers tend to use only a limited number of technical tools. The most important are the 9 - and 14-day RSI, obvious trendlines and support levels, the Fibonacci retracement, MACD (moving average indicator for Zusammen-/Auseinanderlaufen) and the exponential moving average values for 9, 20 and 40 days. The closer you approach the opinion of the majority of traders, the more accurate your assumptions fail, since a larger number of buyers to sellers mathematically means that the price rises or falls with a larger number of sellers.
other posts
- Ytg Ss Mq4
- Best Default Settings Ichimoku
- Maprofit Mq4
- Adx Indicator Moving Down
- Codebase Mt4
- Rules Of Stochastic Slow Indicator
Forex is simple follow the trend and you will rich.
ConversionConversion EmoticonEmoticon