Forex Fantastic » Trading

Getting Started with Forex Trading

admin — Thu, 18 Mar 2010 19:51:38 +0000

Forex trading is a very appealing investment opportunity, and of course can be a very rewarding one. With more than $3 trillion being traded and circulated in one day, a lot of traders are enjoying handsome profits. A trading day starts in Sydney and continues to shift from time zone to time zone across the globe until it reaches New York as the last marketplace to open each day. You know that you can make money 24/5 — the opportunities are there for smart traders.

To get started with forex trading, you need to prepare several things. Other expert might tell you to open a trading account or get a reliable signal service, but those are not what you really need. To start your journey into the forex trading world, you need to learn.

Study the basics of forex trading. Learn how to read charts as well as how to execute trades. Most forex brokers have demo account you can use to familiarize yourself with the system and learn how to make good trades. While you study the basics, you can observe how the theories are applied in real trades.

Continue by learning indicators, influencing news and other factors, and of course yourself. Indicators can help you in a lot of practical ways, while news and fundamental analysis can make spotting trends and possible money-making opportunities a lot easier. By studying yourself, you can learn your trading style, control emotion while you trade, and formula a strategy that suits your personalities.

Trading Multiple Timeframes

admin — Mon, 28 Dec 2009 19:50:22 +0000

Forex is indeed a very volatile market, and you need to go the extra mile to determine market direction and make profitable trades. That is why I always remind new traders to have the right point of view; forex is not a get-rich-quick scheme and efforts are needed to be profitable. One of the things you can do to be more profitable in forex is to trade multiple timeframes.

Common forex trading software usually has different timeframe settings. You can set the chart to display movements in different intervals, from 1-minute to 1-months. A good rule of thumb is to have at least three charts if you want to trade multiple timeframes. Start with the lowest chart timeframe you usually use, and add two more charts to help you analyze market movements.

The lowest timeframe is called short-term, followed by intermediate-term and long-term. If you use 15-minute for the short-term chart, you can use 1-hour chart for intermediate-term — that is four times the lower chart timeframe — and 4-hour chart for the long-term analysis. If you generally use 4-hour chart, add 1-day and 1-week charts to help you.

You can confirm trends and analyze movements better with multiple timeframes. No matter what trading style you use, using multiple timeframes properly can help you be more profitable and catch more trends. Formulate your own strategy of how you can use the multiple timeframes to support your current trading style, and you will be much more profitable in no time at all.