Forex online trading is a multy million Dollar business now day, joining one the forex broker is as easy as 1 2 3. Million of people everyday invest their money for a dream of getting rich quickly. Well I guesse they will just end up to be an easy pray for these online brokers. Many of these investor are as eager to immediately get rich in order to solve their money condition in this world wide recession period.
The chance of winning a trade is 50/50 win and loose. But without market knowledges a trade session will end up loosing by 20-30/80-70 percent advantages to the broker. So what are the tool to increase our odd of winning a trading session. One must have the patiens, convidence, fundamental knowledge and technical analysis knowledge. Without either one of the mention factors, an investor will end up giving charity to the forex broker.
It takes time not days but years to matured a trading technic. Loosing a trade must become a lesson in order to make strategies for future trading session. One must psychologically sound, because once a trade is launched there is no turning back and the blood can be felt rushing through every part of the vains. But with a sound knowledge of the current forex situation, this all are worthed.
So what is the first basic knowledge before entering a trading session? Well the answer is simple, one must know which currency is the stongest and which is the weakest. That currencies pair is the best to be traded upon. Suppose Euro strenght is 4% and the Aussie $ is at the bottom of -3%, the pair EURAUD is the best to be traded upon. With the strenght condition 4% vs -3% it is clear that the trading session is a bull session or all the time going up. Suppose the USD is 3% strenght and EUR is 2% strenght the direction of the trade will be a slow side way but bearish market (not worth to trade upon). Slowness will become a boomerang and with out money management, one will enter the market with invesment exceding the supposely standard value (will be discussed later).
With the knowledge of currencies strenght one must cross check those numbers with the fundamental issues, such as economic calendar, change of interest rates, wars, etc. All which effected the money market.
Then again cross check those numbers with technical analysis, such as Elliot wave (In which wave number 1,2,3,4,5,a,b,c) and is very important. If the session is in a rebound then check the session chart with Fibonacci Retracement line percentage. These 2 important technics Elliot Wave count and Fibonacci Retracement percentage is the key not just for forex trading but also others such as index, commodity, etc.
Understanding technical indicators such as Laguerre, MACD, ADX, Moving Average (MA), SAR, etc is a great advantage. These indicators show, the best time to enter and exit the market.
Joining a forex forum can also be a good way to winning a trading session.
When all infos have been gathered, one will become technically and psychologically sound to enter the market with ease and ends up winning. So the odd increases to 60-70/40-30 percentage with a winning advantage to the trader. Sustaining the winning odd of 60% above is a good way of trading.
One more thing before ending this article, is knowing a money management. Meaning how much money one spend to be traded upon. The best value is below 10% of your capital. On entering aposition, safety measures must also be taken to safe guard the investment. The use of automatic stoploss and take profit tool are the most important safety measure tools on guarding the investment.
Well I guesse those the things, that I know after some years of trading. Good luck and have asafe trade.
