Learn How to Make Money in Forex – What is it? Learn Ways to Trade It
Making money in Forex is not simple as some people think it may be. Statistics show that 95% of Forex traders lose their complete account balance. People hear about forex or day trading all the time and then think they need to get into it to make some money for themselves, and then what happens is they rush to setup their trading account and lose it all. Now for other people they might run into some problems like “emotions”, meaning they lose some money and try to make it back by doubling or tripling the trade size with no success.
Again with the emotions, you could be in a BUY trade (you expected the market is going to go UP) then all of a sudden you see the market sold off (market went in the opposite direction DOWN) you then get scared and close your trade and take a loss. But then later on that day you see the market raise right back up to where you expected it would go.
The Forex Market is very unpredictable no matter what anyone wants to tell you. However there are strategies and tools you can use to plan and increase the probability of your trades and overall success in this attractive and unregulated market.
There are some systems/strategies out there that people use to go into and exit trades, these are mostly indicators that notify the person when to go into and EXIT a trade. But not every system works all the time, the market changes and evolves and then systems will have to be modificated etc.
There are a lot of different tools in a forex charting system that helps the trader do technical examination on the money pairs. Some of the more commonly used tools are Fibonacci, Trend Line, Candlestick, Pivot Lines etc. Forex charting has different time frames you can use to help predict, like this 1min, 5min, 15min, 30min, 60min, 3hr, 1 day. So for example if you want to figure out if a trend is up or down one way to do this is to check higher time frames, this gives you a better probability in your trades.
There are two types of trading: basic and Technical examination. basic examination is more of trading on what controls or move the markets, examples are important news announcements, gold or oil. So if tomorrow morning there was a news event for unemployment rate in the US and the number that came out was a big negative, that would be bad for the US and so you would want to go into a SELL on a USD pair. basic trading is mostly for the more experienced traders because of its high volatility. Technical examination is mostly just using charting tools and systems/strategies, this is the most shared way to trade and everyone does it.