For forex beginners, trading forex can be a real challenge. So much can be learned and scammers are around. My tip is to choose a reliable forex broker, develop a forex strategy, trade and learn all at the same. This is one of the most basic and secure ways to make profitable business transactions. You need to have a forex strategy, apart from selecting a suitable forex broker. I’d like to show 7 ways for each beginner to trade forex in this article.
Long term investing
This is one of the safest forms of forex trading. There’s not much that this method can do wrong. You should have a great picture in sight when you decide to invest in the long term. This means that big money, an analysis of the world’s markets and patience are needed. To invest on a long-term basis, you have to choose the currency pair, predict the price direction on the basis of the countries’ current economic status, and choose how long before selling that currency. At this stage, patience is the highest quality of traders. Such long-term investment is not immediately paying off. You
Must wait the right time. In addition, you must not be easy. Trade as you always have to explain to another person your decisions. It must be strongly supported by every decision. Here are the things you must successfully trade in the long run:
Rate of interest You may have to pay or earn interest rates, depending on your currency pair. This depends entirely on the currency’s country. To decide which currency you should pick you closely follow the news.
Factors that affect the economy
Economic impact factors The financial situation affects the currency you choose. Different factors, including the employment rate, CPI, policy (election, law…) and interest rate, affect the current situation… To adjust your strategy in time, you must keep up with these factors constantly.
Engineering analysis And choose not just a news-based currency. To back it up, you need a technical analysis. Do some research to make sure that you have every proof to help convince yourself.
High charts You cannot use short-term charts when you decide to invest for the future goal. You have to go back a step. Start with weekly or monthly charts. This gives you a better knowledge of the overall market and gives you a better feeling of price movement.
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Trading based on news
Due to the age of media and media explosion, such information was never easy to get. This makes traders trading forex on the basis of news and hot updates so much easier. Every second, something happens around the world and the market is open 24 hours a day, so that you can always do business on the basis of news. You should focus on the main currencies in this way because you can find news on them the easiest. The most stable currency pairs in the largest financial markets are as follows:
- U.S. dollar (USD)
- Euro (EUR)
- British pound (GBP)
- Japanese yen (JPY)
- Swiss franc (CHF)
- Canadian dollar (CAD)
- Australian dollar (AUD)
- New Zealand dollar (NZD)
You can trade up to 28 currency pairs based on these currencies. And this method aims at order to stay relevant that are affected by news, as opposed to long-term investment above. You should know when most news in these markets is announced for this method. Most news items are issued as follows (EST) except when news is urgent or sudden:
- 8:30 to 10:00 in the US
18:50 to 23:30 in Japan
- 7:00 to 8:30 in Canada
- 2:00 to 4:30 in the U.K.
- 1:45 to 5:30 in Switzerland
- 17:30 to 19:30 in Australia
- 16:45 to 21:00 in New Zealand
- 2:00 to 6:00 in Europe
What news should you notice?
There are a lot of types of news when you say news, how can you know which one can have a real effect on the market? Well, here are types of news that you should definitely take good care of and make the decision when they are released:
- Interest rate increases or decreases
- Rate of unemployment
- Balance of trade
- Business, consumer or production surveys.
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Trading based on daily volatility
The Forex market is the world’s largest trading volume market. Every second in the market there are thousands of traders. You also can see that the prices are heavily affected and the market can be truly volatile. Thanks to this volatility, of course, you can make some money.
It is difficult to point out volatility because it is “volatile.” This can be predicted by anyone
Out of itself. But you can predict the volatility of a currency with the assist of indicators sometimes. The currency pair can guess volatility Often the most regular pairs are very stable.
The volatility of currency pairs, such as USD/RUB, USD/ZAR or US/TRY, is more likely to happen.
Yes, volatility can lead to increased risk, but you can make profit safely if you know how to trade based on that. You can’t keep volatility under control, but you can manage risk. However, volatility and risk can never be denied to go hand in hand together. There is therefore a risk management plan in order to trade based on daily volatility.
You need to find the right indicator to use this method to trade forex.
Only indicators can detect volatility. It’s more safe and faster. Or if you’re looking for it manually, volatility usually happens during a major press release. You should therefore keep the current market up to date in order to know when to trade. Don’t forget to use Stop Loss because volatility can increase losses markedly, especially when trading with leverage. The price can be in a way that is highly likely
No one can predict. Finally, small positions are to be traded. It can make a contribution to reducing your loss. Everything’s for your security.
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Trading based on daily breakout
This is one of the best ways to trade large currency pairs with foreign exchange.
It’s pretty simple but it can be very profitable. We operate on a highly volatile market every day (usually at the US and European meetings). The break-out usually takes place between 00:00 and 8:00 a.m. Therefore, after 8, resistance levels are high and resistance levels are low. If the price is over or below resistance levels during the day, you should buy or sell at that time. Normally, you don’t have to look all day long at the daily charts. Just order at eight o’clock.
Earning from swaps
You will be charged or paid an interest fee the next day, if you keep your positions open overnight. The fee is known as swap. The swap must be paid for short positions and the swap for long places must be paid for. You just made some such profit from swapping if the amount you receive is more than the amount you pay. There is no interest fee for a position opened and closed on the same day.
The choice of professional traders is never swap-based trading. The amount you make, compared to how much the price changes in one day, is only too small. This trading method is like a reminder that before a trade day you should complete specific positions.
The average price of a Forex Instrument you buy by buying it will be understood by you intentionally lower.
When the price falls. Even if the price goes up further
You can always make profits quickly, slowly than when it falls
Your asset’s average price is less.
You’re purchasing a $50 currency. You see the price falling to $40 next day.
You will therefore buy $40 as much as yesterday. Your mean now The cost is 45 dollars. The price continues to fall to $30 next day. You are now maintaining
For the same amount, purchase at that price. Your average price is therefore $40 now. You only have to wait for the price when you need to make profit In the beginning, increase above $40 instead of $50 if you buy nothing Two days ahead.
This approach is not common in forex trading. The principle of forex trading is to immediately reduce and not prolong the losing position. The price can hit the Stop Loss easily and you lose a lot more money than you could. Or, from the beginning, you can choose not to stop loss (which is not advised). Only when you are confident that the market will take you on your way and that the fall is just an unexpected misdirection can you use this trading method.
This method of trade in forex trading is also not common. The time to do this is when the market is going very sharply in a new direction. In the Forex market these moments are rare. If it’s?
Do, you should very strongly set the Stop Loss and take profit very narrowly. This method is intended for several small profits. For example-, you can set a stop loss of 10,000 and take advantage of 50 points. You get 99% before the price hits Stop Loss. You accept funds. This method is safe, but difficult to manage, as it is hardly the ideal time