It's financial freedom. It's the way to increase our wallet uniquely through trading on forex. It's as easy as making a bet whether currency pair is up or down and we will gain profit from it. But, it's not as easy as that.
There are two basic methods to make a better decision whether we must put our order "up - buy" or "down - sell".
Through technical, and
Technical analysis says, that all market movements can be represented by graphic pattern, or the opposite, graphic pattern of market movement represents real movement on real market. It's like labeling to a market movement. Just by looking at graphic pattern, maybe we can predict the next movement on market, whether up or down.
I am not an expert on forex trading, but we can learn together in this case. Through months and years i searched the basic understanding about how to predict market movement.
I found several important things to be known:
Market Hours: We must know that market movement are managed under several market hours. Once we know at what time we made a trade, then we can configure whether we are on hot time or not. At earlier time, depending on current market hour, it can be considered outside of hot time - most active, otherwise (at close hours, where real market is less active, usually office time, depending on current market hours) there will be slow movement.
Making Correction: When you made a trade at slow movement (in the morning, or at the beginning of current market hours), there will be a chance for us to analysis and making correction further to stop order or continue with new order at opposite direction, just if our order was wrong. But if we made a trade on active market - hot time, then there will be rapid movement, and once we took an order at wrong direction, there will be less chance to stop an order without loosing a lot of money.
Moment of Truth: We have to know when the market will explode (rapid movement to up or down). On forex, it's usually called as "Breakout". It' happened on busy time - active market movement.
Direction: We try to predict whether at the moment of truth, market will move on up or down direction.
Money management: You must set your failure at tolerable level. So if you failed to predict direction, you still have enough money to start again.
Next, we will discuss about real acts to start trading on forex. There will be no super strategy on forex but at least we can simplify it, just to handle complicated situation, rather than simplify to reduce the important things (because if something is important then it's important).
First, we must understand to use Economic Calendar. See Forex Factory. It's to realize the important thing, it's how to predict when the market will show a BREAKOUT.
Secondly, we must try to find out to where direction for a market movement. There are various way on this case, from using technical analysis (moving average, etc), or by reading economic news, market sentiment, etc.
Those are basic understanding. You can learn from other sources (babypips, etc) to learn about forex, but at least those above understanding worth to be remembered.
If you can master on this case, then just by using our mobile phone, we can trade and make money. As easy as 1-2-3.
One important thing should be noted. You don't have to gain winning on trade again and again. Professional traders are not trying to gain win and win again without loosing money at all. But professional traders are trying to get final result which has total sum of money greater than before again and again (with money management).
And if we are still having trouble on forex trading, then ONE KEY TO MASTER IT, just by trade (and try to stick) on your favorite pair (EUR/USD or etc) then try TO LEARN THE HABITS of your pairs. So you can increase your ability closer better than before, to predict when the BREAKOUT will occur and at what direction.
- Record and analyze our progress on forex activity (Log) @ MyFxBook
- Forex Chart @ TradingView