Friday, 23 March 2018

Trading manual part 4 Forex Trading - How to Trade Like a Pro

Styles there exists within the market. There are different styles with their own pro's And con's. Let's have an in-depth look into it! The Forex market is based on this trading style so And as you've heard previously, the traders are in the Direction, the stronger the cost will react! The different trading styles are perfectly combinable to get your overall vision on the market straighter. This will help you to get a better emotional Control and a stronger psychological game. So, let's begin with the trading style we trading strategies

Fundamental trading

Fundamental trading is better known under the term "news trading". Fundamental Trading is seen of one of the popular trading manners before trading. Fundamental analysis is the interpretation of statistical reports and economical indicators. Things like changes in interest rates, employment reports, and the latest Inflation indicators all fall into the realm of fundamental analysis. The technique is mainly used by traders who usually use the high importunacy news Releases so as to ascertain the direction of their trades. The concept behind this, is That on the brief term, the cost will follow the direction of the information results. They Given the impact the economic indicators could have on the market; it is important to know beforehand when these are due for release. Therefore, we are using an Economic calendar to check all news releases at the beginning of the day. On the Economic calendar you may also find the importance ofthe information (high, mid, low). Fundamental trading and news results left traders perplexed alone pretty often. To Give you an example; High important news is released about the U.S. Dollar. You Expect the price to create a price movement either up or down. However, the price From the EUR/USD does not move after the news results. Fundamentals are a great Complement on your everyday trading routine, but we should definitely not use them as our main source!

Technical analysis

Despite all the exotic and fancy indicators and trading tools Nowadays, technical Analysis focus just on the supply and demand on the market. Method of analysing the data that have been generated by previous market activity. As a technical analyst You're using charts and a few tools to identify Patterns. You need to think off support and resistance levels, but also trend Lines and Japanese candlestick analysis will be discussed extensively. As so many Traders using the way of analysing these days, it is reacted strongly on by the price. As lots of traders see a particular cost level as a potential change point from the past, As there are so many orders out there, the price will react on this level! Every trader has his/her own trading platform. Technical trading can be performed in Ways as there are so many strategy's and indicators . Some people Are comfortable with short term trading, but others prefer the long term trading style! Create their very own trading style in order to succeed. You need to be fully comfortable With your trading style in order to be a consistent trader. Continuation of different ways of trading in our next post, Don´t miss it!!

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