Forex Tutorial How To Find Your Trading Style

Forex Tutorial How To Find Your Trading Style

Whether you like to fish or you prefer downhill skiing? How do you answer a question which may also be brought impact to your trading success through a trading system that you use. The forex market offers many opportunities that can be taken to earn profits in forex trading. But to succeed, you must know in advance Your pros and cons. Most forex tutorial only teaches "how to right for trading". And this is not entirely true. As an adult, You will be hard to change your trading style, while the market is changing all the time. Therefore, it is much easier to find techniques that suit your personality rather than try to adjust to the way other people might be trading "trader expert". This time forex tutorial articles will discuss how to find your trading style.

Trading Strategy

So, why the fishing and skiing downhill so important? Believe it or not, this is a question about trends and trend in trading. Angler is the trend, skiers likened contrarian trend. Trend traders, they like the angler who throws the bait many times before finally getting the fish. On the other hand, downhill skier, seeking the thrill of speed before he reached the end of its goal. If the note is similar to profit as soon as possible because the price movement of the currency quickly. Whether fishing always leads to the trend and skiing against the trend? Of course not. However, the activity you select definitely reflect your trading style.

Time Frame

The second question also important is whether you're more comfortable using time frames short term or long term? Generally, a trader who trades based on trends will choose a longer time frame because of the trends on the forex trading developed based on months rather than days. While the likes of market sentiment that utilize quick switch will operate on a shorter time frame.

Usually, the short time frame that effectively used is the graph per hour with an average target of profit/risk of at least 30 points, because of the nature of the market that spread to cause smaller time frame less effective. For example, the pair EUR/USD, which is the most liquid instrument in the world and usually wide spread bid and asknya 3 point. A trader with a profit target of 10 point should get 13 points profit (10 points + 3 point spread) but sometimes she just get a 7 point (10 points – 3 point spread). This is what causes many negative-minded traders because of the difficulty of finding profits in a short time frame.

Types Of Analysis

After you determine the best time frame, the next question is: what kind of analysis that you will use for forex trading? Currently an awful lot of debate between the fundamentalists and teknikalis.

The fundamentalists scoff at the efforts of tenikalis to predict future price movements by looking at current price movements on a graph. Advocates of fundamental analysis technical analysis considers such ancient ritual predict the future from the entrails of dead animals. News, economic reports and comments from monetary officials is the main tool of the fundamentalists. Teknikalis ignore data as something that pathetic and contradictory, they believe the response in addressing market news will be reflected from the previous price movements and will be a clue to future price movements.

Which one will be the winner? None. Trading in terms of technical or fundamental just like suction thumb, like in boxing world title with one hand strapped to the back. The fundamentalists could speak, a result of global demand for oil will drive the price of crude oil to $ 100/bbl and they bought the dollar as the greenback, Canada but if seen on the short-term charts USD/CAD looks oversold, so they will most likely lose his money – even when a few moments later it turns out that their analysis is correct. Instead, a teknikalis using Fibonacci numbers to determine the benchmark price suddenly there was economic news that keeps the market turmoil, the level of resistance that has been created will be destroyed ravaged because traders tried to close their positions.

Fundamental to Longterm, Technical for Shortterm

You need to remember, that the fundamental factors tend to have a strong impact on trade in the long term, while the technical facet will impact strong for short-term trading. For the long term will usually respond to economic news such as GDP growth, interest rates and other economic factors.

For example, we see the movement of the GBP/USD in 2005 in the image above. At that time, the Federal Reserve Bank of New York are raising the interest rate of 200 basis points from 2.25% to 4.25%, while the Bank of England, who was at that time the United Kingdom was experiencing economic slowdown and depressed consumer sentiment, choose lower interest rates from 4.75% to 4.5%. The difference in interest between the two currencies is dikonfersi to almost 0% (at the beginning of 2006, have reached 0%). Traders who Transact long term or short term equally benefited because the GBP/USD decline.

This pattern is similar to the movement of the USD/JPY but upside down. USD moves while the Yen Japan fixed 0%, this led to traders taking a position with the expectation of profit 20% in a matter of months. In 2006, analysts predicted the U.S. tightening cycle will end soon while the new Japan will begin, traders immediately responded that they benefit large enough that they create and analysis proved correct.

This Forex Tutorial articles note:

Whether you are a trader or a long-term fundamentalist teknikalis short, the forex market can all accommodate your style. Although the conflict between the two was never resolved, but the undeniable truth is that you must use a style that best suits your personality. If not, you are not likely to succeed. Therefore, the first question for beginner forex trader is not "Whether the price will go up or down?" but rather "a Trader am I".

Piratebay 5:09:00 AM Komentar