How To Trade Forex
Research the best ways to invest. Forex is the biggest financial market in the world. It is bigger than the US stock market, because the daily turnover has now exceeded 7 Trillion US dollars.
Understand currencies and price fluctuations. Currencies are transacted in pairs. Choose a single pair and learn how to trade it until you get to know how that pair moves. The best pair is the EURUSD. Other good pairs are GBPUSD, USDCHF and USDJPY. These four pair make up 160% of all online transactions. Since 2 currencies are in a pair the total is 200%.
About Currency Pairs Tutorials
- Market Participants
- Major Currency Pairs
- Currency Pair Names
- Advantages of Forex
- Interpreting FX Quotes
Get a charting package which allows you to see the current price as it happens and make technical analysis. The most popular trading software is Metatrader4 Platform.Its easy to use, chart are well presented and the software has multiple technical analysis tools for an investor to choose from. The platform/software displays charts computer screen; the charts show the current buy and sell prices of the various FX pairs. The platform helps you keep track of your funds and how the pair which you bought or sold is doing.
The screenshot below shows the user interface of the MT4 Platform.
Learn a system which gives you an indication of when to enter and when to exit trades. Following the markets price action is a popular method that professional investors have been using for over a hundred years before charts. Candlestick patterns, indicators and systems can also be used. All these methods are discussed in detail on tradeforextrading.com.
- Trading Systems
- Create a System
- Writing FX System Rules
- Generating Signals
- Tips For Systems
- Writing a Journal
- Writing a Plan
- Stochastic System
- Moving Average Crossover system
The System uses the Indicators below:
Please Read Them Before Creating Your System
Example of a System
Start with a demo account before trading with real money. First start by opening a demo practice account and practice with this demo account, until you get to understand how the foreign market works and when you are confident and consistently making good profit then you can open a live account.
Forex Account Topics
When you open a live account, trade with your plan and learn how to manage the emotions in trading by learning about market Psychology.
Market Psychology Topics