Forex trading is widely regarded as one of the fast roads to financial freedom, this statement is actually true, but not always true. Trading forex is true to bring traders to financial freedom, but it takes a long learning and discipline in trading so that goals can be achieved. This is what is sometimes not adhered to by many traders who want a fast road, they assume that all can be taken with an instant when not.
Trading strategies created by one person can not always succeed in other traders, as well as trading strategies that are done on this day may not necessarily bring success in the next trading, even also can lead to loss in large numbers. This is why the adjustment in trading is mandatory and absolutely necessary to always be able to gain profit in trading.
For a beginner trader there are 3 basic forex techniques that must be studied and remembered in order to get success in trading.
THE TREND IS YOUR FRIEND
This is what must be understood, not once against the trend and the flow, trend is the most intimate friend of a trader. Just by understanding a trend, a trader can gain profit in trading. Defying the trend is a big mistake in a trading.
In its development there are some trading techniques that are opposed to the trend, but quite dangerous and just get a profit that is not comparable with the risk factors taken. Actually it's not against the trend, but using the price correction of a trend that goes, because at this price correction is the opposite of the trend but the current and the rate is not as aggressive as the current trend.
From here can be interpreted that when the up trend should only open one position BUY and vice versa, when the down trend should only open one position SELL only. Avoid opening BUY or SELL positions when sideways occur, although still can benefit but still the risk is not comparable with what is obtained.
BUY IN SUPPORT AREA
It is still related to point no 1 above, when there is a trend there are times when the price touches the support point or the resistance point. The best opportunity to take a BUY or SELL position on a trend is when the price is at the support level or at the lowest level of a trend.
Expectation of taking this position when it reaches the support level of a trend, the price will reverse up. But be careful when there is a break out in the support level, because it could be a reversal trend pattern. From here a trader must learn about the legal support and resistance well so as not to get stuck false signal.
The best way to do this is when the price is corrected before finally rising again as seen in the picture above.
SELL IN RESISTANCE AREA
This is the opposite of point 2 above, where the price is taken when the price is at the top or at the resistance level. This is a condition where up trend reverses direction to down trend, when break out support area will make reversal pattern from up trend to down trend. This is a good time to open a SELL position.
But be careful when there is a break out, it could be a false break out, so the first time a break out do not rush to take a sell position because the fear is just false break out and the price will go up. Wait one next candel whether confirmed correctly or not, if it is confirmed correctly, it will not hurt to open a SELL position in the resistance. This point is when support becomes a resistance.
Or it could also take advantage of a correction when a trend occurs, as if there is a very strong trend, not always the price will move in one direction is not it? Certainly aka the tone when the price corrected, well when the price corrected to the resistance level is also a lot sought by traders to open a SELL position.
All this sounds easy is not it? But believe me this is not as easy as imagined. Before trying it on a real account, it's good to deepen these three basic techniques in a demo account in order to better understand than just theory.
Quite a lot of forex trading techniques that sound easy when just still a theory and become a major obstacle when practicing in the field. The only way to deepen these three techniques, the trend is your friend, buy in the support area and sell in the resistance area is to multiply the exercise in order to further understand the characteristics of a currency. If it is needed it can also with the addition of studying some supporting technical indicators that will be discussed in the next discussion.
Trading strategies created by one person can not always succeed in other traders, as well as trading strategies that are done on this day may not necessarily bring success in the next trading, even also can lead to loss in large numbers. This is why the adjustment in trading is mandatory and absolutely necessary to always be able to gain profit in trading.
For a beginner trader there are 3 basic forex techniques that must be studied and remembered in order to get success in trading.
THE TREND IS YOUR FRIEND
This is what must be understood, not once against the trend and the flow, trend is the most intimate friend of a trader. Just by understanding a trend, a trader can gain profit in trading. Defying the trend is a big mistake in a trading.
In its development there are some trading techniques that are opposed to the trend, but quite dangerous and just get a profit that is not comparable with the risk factors taken. Actually it's not against the trend, but using the price correction of a trend that goes, because at this price correction is the opposite of the trend but the current and the rate is not as aggressive as the current trend.
From here can be interpreted that when the up trend should only open one position BUY and vice versa, when the down trend should only open one position SELL only. Avoid opening BUY or SELL positions when sideways occur, although still can benefit but still the risk is not comparable with what is obtained.
BUY IN SUPPORT AREA
It is still related to point no 1 above, when there is a trend there are times when the price touches the support point or the resistance point. The best opportunity to take a BUY or SELL position on a trend is when the price is at the support level or at the lowest level of a trend.
Expectation of taking this position when it reaches the support level of a trend, the price will reverse up. But be careful when there is a break out in the support level, because it could be a reversal trend pattern. From here a trader must learn about the legal support and resistance well so as not to get stuck false signal.
The best way to do this is when the price is corrected before finally rising again as seen in the picture above.
SELL IN RESISTANCE AREA
This is the opposite of point 2 above, where the price is taken when the price is at the top or at the resistance level. This is a condition where up trend reverses direction to down trend, when break out support area will make reversal pattern from up trend to down trend. This is a good time to open a SELL position.
But be careful when there is a break out, it could be a false break out, so the first time a break out do not rush to take a sell position because the fear is just false break out and the price will go up. Wait one next candel whether confirmed correctly or not, if it is confirmed correctly, it will not hurt to open a SELL position in the resistance. This point is when support becomes a resistance.
Or it could also take advantage of a correction when a trend occurs, as if there is a very strong trend, not always the price will move in one direction is not it? Certainly aka the tone when the price corrected, well when the price corrected to the resistance level is also a lot sought by traders to open a SELL position.
All this sounds easy is not it? But believe me this is not as easy as imagined. Before trying it on a real account, it's good to deepen these three basic techniques in a demo account in order to better understand than just theory.
Quite a lot of forex trading techniques that sound easy when just still a theory and become a major obstacle when practicing in the field. The only way to deepen these three techniques, the trend is your friend, buy in the support area and sell in the resistance area is to multiply the exercise in order to further understand the characteristics of a currency. If it is needed it can also with the addition of studying some supporting technical indicators that will be discussed in the next discussion.
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