Forex trading is known as one of the best methods to earn
online and it is one of the methods, where most people start at first sight and
get disappointed soon. Every beautiful thing has an ugly side which most of us
doesn’t see at first impression or we are not interested to see. To consider
following suggestions you should have to have the basic knowledge of Forex
trading, and if you still in the dilemma considering facts between Forex and
gambling, please read this article.
1.
You just saw the chart - It is not a must you to
start a trade once you see the chart or open the application for the first time,
don’t be hurry. Sometimes it may be a good point you should start trading and
sometimes it may not. And even though it’s a good point, a turning point of the
chart, if you are not ready with the correct information you should reconsider
before starting trading.
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| Image Credit : tracksinthedust.com |
2.
Did you read the news - There are many
supportive sites online about financial status of the world, do some research
about the currency pair you selected to trade on. A Simple Googling will help
(eur usd forecasting). Most related news will come in the top of the list that
you should read. And do not spend more time just reading the news. Read the
discussions and the experts analysis reports (Dailyfx.com,inveting.com)
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| Image Credit : www.coanews.org |
3. What does the chart says - examine the chart properly. See every type of time charts, 60seconds, 30mins, 1hour, and 1day. See the trend of the chart between 1hr, 30mins and 1 min to get an idea of the trend. Call back the news you read about the currency pair.
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| Image Credit : www.revelstonelabs.com |
4. Support and resistance - By examine the chart
you will see some clear Support and resistance points, and always remember old
support and resistance points does not guarantee that the same will repeat, but
most of the times it does. If the chart is heading to a turning point be ready for a trade, if you have read the news, now it's time to see if those are correct.Understanding these points gives you the
confidence for your final decision.
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| Image Credit : callorputoption.com |
5. Backup plan - Always have a backup plan, A What
if idea. But the most important is being positive strongly on your main
decision, do not always try to be depending on backup plans. Hedging strategy
may save you from disaster but it will not save you every time.
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| Image Credit : britnidanielle.com |
As I said earlier Forex trade may bring you to success and
may put you down to the bottom. Control your mind, Patience plays a big role
with trading, control the greediness. Most popular saying “be a sniper not a
machine gunner”. Try to be satisfy by what you have earn, if continue to lose
consecutively, it’s better to stop trading for a time and start reading. Do
your Practice account trading at least a month before stepping in to real
account. Good luck!
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