Where to Start – Forex For Beginners!


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Very often, beginners are asked quite a logical question: Where to start? The answer to this question will determine how and what to study to become a successful trader. For profitable operation in the currency markets, the trader must:

1 – Be able to predict the trend (market analysis). There are many methods of analysis: fundamental analysis, technical analysis, Elliott Wave analysis, Candlesticks, Demark approaches to technical analysis, the theory of Bill Williams' Chaos, etc. With their help, the trader can anticipate changes in exchange rates in the future.

2 – To be able to choose the right moment to enter the market and the closure of open position (Trading Strategy). Identification is not enough mainstream, choose the right moment to enter the market is very important for conducting successful (profitable) trade. If you are having identified the bullish trend, and buy at the peak, before the rollback, the rollback can be initiated "lick" your Stop Loss order. It is probably a shame that, despite the losses, you absolutely correctly identified the direction of the market. As a result, after the execution of your Stop Loss order market turned around and went in your direction, but without you. On trading tactics …

3 – Observe the rules of control over capital (money management). Compliance with these rules will significantly reduce the risks of your transactions. Your Money Management System will allow you to avoid involvement in the financial adventures and permitted to deal only with minimal risk.

4 – Do not make emotional decisions (psychology). When trading decisions should be guided by reason and not emotions. Emotional decisions are often wrong and unprofitable. Trading Psychology …

In the next post I will begin by considering the first component of any successful trader – with the methods of market analysis.

Correctly predict the future – the main objective of any trader. Which only methods do not utilize financial market participants to obtain accurate information about upcoming events. In the course are not only quantitative methods of forecasting, but also intuitive, psychic, astrology, etc.

Position trader, released on the currency market, you can compare the situation of people treated in the ocean or in the woods. And how he knows how to navigate in the surrounding space, the stars while in the form of ant, the arrangement of moss and lichen on trees depends on the fact whatever he climbs out of the woods, and if you choose, with what cost.

Most common among traders are two types of analysis: technical and fundamental. One can argu about which of these methods is the most important and preferred to work. In my opinion, technical analysis is easier to learn and use.

Technical analysis is based on the belief that the market has taken into account everything: the events, and expectations of market participants. Movement of prices – is the vector summary of all factors, even those that have not yet identified and studied, but which have influence on the dynamics of prices. My following posts will be devoted to the principles of technical analysis of financial markets.



Source by Dr Michael John

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Where to Start – Forex For Beginners!

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