Forex Trading

Text-only Preview

Basic Forex Trading Strategies For Newbies
Trading Pointers For Newbies In The
Currency Market


Forex Trading
Page 1


Part-time Forex trading can help you increase your household income. This is because, the
market has a twenty-four hour operation means there are no starting bells, and you can trade
after your regular work is over. Unlike stocks which can be traded only during business hours,
you can trade currencies after work since trading passes through various time zones and
trading centers in one session. At the same time, when trading currencies, there is profit
potential in both increasing and declining markets unlike stocks where you typically have to
wait for an uptick. Just like any venture, you can be successful by using strategies. If you're
considering venturing into this financial market, here are some Forex trading strategies for
beginners.
For Trading Strategies for Newbie's
Pair a strong currency with a not so strong currency. When you trade currencies, you are
essentially buying one and selling another. Since this is how the Forex market is structured,
then you can gain most profit from combining a strong currency and a weak currency. To
identify if a certain currency is strong or
weak, you have to review the economic
data of its country of origin.
Make trends and trend lines your friend. A
trend is a term used for any solid,
consistent price move in one direction,
and this can be either an uptrend which is
a series of escalating highs and lows, or a
downtrend which is a series of descending
highs and lows. The simplest way to
identify trends is by using trend lines.
Using a trend line, you can predict future
prices at the same time locate specific
trade entry prices. In most instances, it
would be more profitable to go with the
trend than against it. Related to the
concept of trends is using support and
resistance indicators to enter and exit
Forex Trading
Page 2


trades. All financial markets, Forex included, show some consolidation around certain price
levels prior to breaking through. When price breaks below support level, you should go short.
But if the price breaks resistance level, you should go long.
Familiarize yourself with both fundamental and technical concepts. While a lot of people
would claim that technical analysis is more suitable for Forex, it is often better to also
understand fundamental concepts. The reason for this is that fundamental principles can help
determine the broad themes in the market; while technical principles can help you identify
specific entry and exit points.


Forex Trading
Page 3