Trade Forex Like a Pro
Last Update: June 15th, 2020
Learn How to Trade Forex Like a Pro
Learning how to trade Forex like a pro is really not that complicated. Anyone can learn to trade, it is a fact. Don’t get us wrong, Forex isn’t a piece of cake, but whoever puts in the effort to master the fundamentals and stays ahead of the latest market news, can have a real shot at making it work. All of us at FX Leaders discovered Forex by chance, years ago, got interested, studied and caught the Forex bug. From there we each began trading and achieved real success as traders.
So who is this strategy good for?
Anyone interested in learning more about Forex and trading for himself. Anyone looking to trading for a second income, or as a way to work from home. Anyone considering Forex as a long term investment option. Anyone who already knows a thing or two about the market, and is looking to turn their knowledge into profits.
This is the most common trading method among traders worldwide. Technical analysis is performed on Forex trading platforms with the assistance of the trading toolboxes and technical indicators brokers supply. Technical analysts try to recognize market trends by identifying repeating patterns and price behaviors in order to forecast future currency trends.
Technical indicators are basically formulas and mathematical calculations. Technical tools and indicators will usually appear on an upper toolbar on your trading platform. By choosing an indicator you will view it either directly on the chart or below it. If you’re interested in technical analysis make sure you know about: Candlestick Charts: These charts contain a sequence of “candles” stretched from the opening price of the candle’s time frame to the closing time of the same candle’s time frame. They’re the most popular charts used in Forex trading. Each candle includes 4 points – opening, closing, high and low. The color of the candle indicates the price direction. Green (Or white) represents an uptrend, Red (Or black) represents a downtrend. A long stick illustrates intense action,short stick shows limited activity in this particular time frame.
Lines above and below the body are called Shadows. Long shadows indicate action in between the opening and closing points. Short shadows indicate that most activity took place next to the opening and closing times of this candle. Lines and Trends: Trends are in fact the heart of Forex trading. They are the basis of our activities as traders. A trend is the direction a chart moves. It can advance in 3 directions: Uptrend, Downtrend or Sideways trend (ranging trend). Each trend is characterized by peaks and lows. In Forex jargon an uptrend is called Bullish, and a downtrend is called Bearish. When we buy a pair we actually go bullish and when we sell a pair we go bearish. Support and Resistance levels: The points on the chart which indicate price barriers. They are the floor and the ceiling of a trend.
The floor is the support level. It appears at the end of a bearish trend. It can be a momentary or final end to this specific trend. It expresses the point at which the buying forces are stronger than the selling forces. The support level is the lowest point in the present trend.The ceiling is the resistance level. It appears at the end of a bullish trend. It represents the point at which the sellers prove stronger than the buyers of the currency, and where the trend is reversed.
The most famous traders in the world, from George Soros to Warren Buffet, admit that they owe their fortune to fundamental analysis. So what is it based on? Think about the economics of the country you live in. The fundamentals of the economy are influenced by many areas, like politics, wars, elections, and more. Each and every event causes reactions by investors and speculators. Governments, central and commercial banks, states and natural disasters all play a role in making the Forex market move. The fundamental approach uses all this to look for long term price trends in the markets.
Understanding economic factors like inflation, interest rate announcements, work force reports and economic crises is inseparable from fundamental analysis. Keeping ahead of the latest economic news with an economic calendar is key to fundamental trading. The leading trading platforms offer detailed economic calendars which provide updates on the most important economic events around the world. Become a professional Forex trader using our Forex trading course