Best time frame.
One of the key considerations when trading Forex is the time frame. Traders have always debated which time
frame is best.
First of all, it's important to note that the time frame itself isn't as important as the duration of trades, and which tab your terminal is open on is more suitable for analyzing and monitoring the market.
Therefore, when making a choice, you should first determine your financial capabilities and your immediate goals.
If you urgently need money and want to earn it using high leverage, there's only one option: scalping, which involves short-term trades lasting from 1 to 15 minutes.
Start-up capital for Forex
One of the most important aspects of Forex trading is the size of your starting capital. This factor directly affects your earnings and the degree of risk involved in trading.
Many beginning traders ask: How much can I earn trading currencies? The answer to this question directly depends on the size of your deposit and the leverage you use to trade.
Forex start-up capital is the amount of funds you deposit into your trader's account for further use in trading on the foreign exchange market.
Some brokers have requirements for the minimum starting capital (deposit), this figure can range from 1 to 2000 US dollars.
First of all, it should be noted that at the moment you can start real trading with literally $1, but in this case, you will also earn a few cents per day.
Therefore, it is advisable to use the maximum possible starting capital, which will allow you to trade with a lower amount of leverage, thereby minimizing trading risk.
Axioms of technical analysis.
As is well known, in any business there are things that do not require additional proof;
this also applies to technical analysis of the Forex market.
The axioms of technical analysis are the conclusions reached by generations of traders regarding exchange rate movements and the assessment of the situation in various markets.
They are universal for both forex and the stock and commodity markets.
All conclusions are grouped into several categories, so there aren't many axioms themselves:
Forex Trends: Concept, Trend Indicators, and Strategy
The movement of the exchange rate always has its own direction, which is also called a trend; the direction in which the price moves determines the direction of opening transactions.
The rate can rise or fall, and in some cases it can remain practically unchanged and remain at the same level.
A Forex trend is the movement of an exchange rate within a specific time period. The time interval used for analysis is important, as different time frames can show completely opposite price movements.
If you compare two adjacent time frames, you can find that they have trends in different directions.
The main indicators that characterize a Forex trend are its strength, duration, minimum and maximum points, and the magnitude of fluctuations.
Forex market participants.
First, it's important to understand what the forex market actually is. Essentially, it's
a virtual exchange that unites all existing currency markets.
This unification occurs because forex dealing centers use various markets or create their own trading platforms to increase liquidity. Some enter into agreements with several large banks, others simply enter the interbank currency exchange, and still others use international exchanges.
This is why the range of forex market participants is quite broad and diverse, but several main categories can be identified.
How to start making money on Forex from scratch, training and practice
If you understand that you can earn really big money only by engaging in investment activities and trading, then the question immediately arises before you - How to start making money on Forex.
After all, Forex is now the most accessible and profitable exchange, the reason for this is the provision of maximum leverage – 1:1000, or even 1:2000 and simply fantastic capabilities of the trader’s terminal.
Currently, using the trading platform, you can trade not only currency pairs, but also many other interesting assets - gold, copper, oil, company shares, cryptocurrencies, etc.
Starting Forex trading from scratch consists of a few simple steps, which I will describe below, but in order to start making money it will take a little more time and effort, but as they say - He who does nothing has nothing.
Everything is not as difficult as it might seem at the beginning, the main thing is to take the first step and not give up if something doesn’t work out right away.
Types of Forex trading terminals.
A trader's trading terminal is the software that facilitates all operations on the
Forex currency exchange.
The terminal not only allows for trade execution but also enables a variety of other activities, including technical analysis, strategy testing, news streaming, and more.
Trading platforms can be divided into four main groups based on their functionality: standard, web, mobile, and automated. This division allows traders to choose the most suitable option.
If necessary, you can use multiple trading terminals simultaneously—for example, a standard MetaTrader for working at home and a web terminal for trading outside the home.
Let's review the available Forex trading platforms:
Trading on the Forex market.
At the moment, there are not many ways to make money quickly; starting your own business
requires a lot of money and connections, and finding a high-paying job is not easy. Therefore, more and more people are paying attention to alternative earnings, Forex trading is one of them.
Trading on the Forex market allows you not only to earn money, but to make a profit, having a relatively small amount of money and without leaving home.
At the same time, it is not at all necessary to have a special education or have connections. As the history of trading in financial markets shows, taxi drivers, athletes, former military personnel and workers in other professions completely unrelated to finance have become quite successful traders.
How to become a trader?
The profession of a trader has always been shrouded in romance; luxury cars, huge houses, and
expensive clothes are all associated with working on the financial market.
This is why the desire to become a trader arises in almost everyone who wants to earn a substantial fortune and rise to the top of the financial Olympus.
It might seem that such a lucrative profession requires specialized education and numerous job references, but this is not entirely true – today, anyone can make money playing the stock market.
However, independent trading shouldn't be confused with working for a reputable hedge fund or trading with other people's money; to do that, you first need to become a professional and earn a reputation.
Forex plan.
A well-written plan is half the battle. The key is to accurately
define all strategic objectives at the initial planning stage and then outline the sequence for achieving them.
Many novice traders mistakenly think that a Forex trading plan only concerns the actual trading process, namely trend analysis and execution of trades in the trading terminal.
A Forex plan includes setting goals, determining how to achieve them, and, of course, the practical part of trading.
Psychology of Forex trading.
In Forex, as in any financial market, psychological factors play a huge role. They sometimes interfere with making the right decisions and are almost always the primary cause of losses.
Surprisingly, psychological market pressure has been the cause of most of the largest losses that have occurred throughout the history of the currency exchange. In this article, I will outline the key points that will help you avoid making unfortunate mistakes.
Forex psychology primarily concerns the timing of opening new trades or closing existing orders. So, what should you do to ease market pressure?
Forex trading system
A well-developed Forex trading system can significantly increase your chances of success. It's the foundation of professional trading, so it's crucial to develop a detailed action plan before starting trading.
The main points that must be included in the work plan are: analysis of the market situation, selection of the entry point, determination of tactical moments and points for closing transactions.
You should clearly outline all the stages of trading and then follow the plan you've already outlined. This will reduce the psychological pressure of the market and protect you from spontaneous decisions.
The Forex trading system is more understandable if it is studied using specific trading examples.
Before you create a plan, you should already decide what you will trade, when you will trade, and how much. Only after answering these three questions can you begin to build your trading system.
Bid and Ask for stock trading and other applications
In stock trading, the terms "bid" and "ask" are used to indicate the price at which an asset is willing to buy or sell.
The bid price represents the highest price at which an asset is purchased, and the ask price represents the lowest price at which an asset is sold.
In simpler terms, these prices can be described as follows:
Ask is the price at which you are selling a currency, stock, gold or other commodity, the higher
Bid is how much you will get if you want to sell something yourself, lower
Opening profitable trades on Forex
Transactions on Forex are carried out in two directions - buying or selling, the choice of direction depends on whether the exchange rate of the currency pair is rising or falling.
The transaction technique itself is quite simple and can be completed in just a few mouse clicks. To start trading, you just need to open an account at a dealing center .
After this, you can proceed directly to installing the necessary software and preparing for the operation itself.
Technical issues rarely raise questions among novice traders, but choosing the direction of transactions and developing trading tactics always raises a lot of questions.
Forex transactions are concluded using a special trader terminal , where orders are placed.
Such a terminal is downloaded directly from the selected broker, since each of the programs already has the necessary preliminary settings.
Independent analysis of the Forex market
Trading on the foreign exchange market is always carried out in two stages: the first is analysis, and then, based on the data obtained, forecasts of exchange rate movements are made.
The main object in this question is the chart of the currency pair, and it is on the basis of its history that all the relevant conclusions are made.
To verify and confirm the obtained data, several methods of currency market analysis can be used at once, each of which is aimed at studying specific indicators.
Forex analysis methods.
There are three main methods used to analyze historical data: Graphical, Technical and Fundamental.
Each of them does not give a 100% result, so to be completely sure, it is better to use at least two of the three named options.
Forex Currency Exchange
Currency trading can be carried out on various platforms, but the most famous of them is still the forex exchange.
Moreover, this exchange is also the most accessible for the average trader, as it is widely used for speculative currency transactions.
The Forex currency exchange operates on the basis of market laws, meaning exchange rates are formed by supply and demand, with artificial regulation completely excluded.
Large players can influence the price only by purchasing or offering for sale large volumes of currency.
Forex currency turnover amounts to several trillion US dollars per day; according to various estimates, this amount is between 3 and 5 trillion, depending on the demand for the currency and market sentiment.
During periods of high interest, turnover increases several times.
The main players on the forex currency exchange are large brokers, also known as market makers. They execute multi-billion dollar transactions and shape the exchange rate by regulating the supply and demand of currency.
How the currency market works, schedule, holidays, principles
The Forex currency market is not, by its very nature, an exchange in the true sense of the word. All transactions are conducted online, meaning it does not have a specific trading location.
Currency buying and selling is carried out on dedicated servers, with orders sent over secure lines.
The currency market operates virtually around the clock, opening at 2 a.m. Moscow time on Monday and closing Friday night.
That is, almost 5 days a week, excluding holidays – Easter, New Year, national holidays.
Trading is conducted according to trading sessions, which are tied to time zones. Typically, there are four such sessions: Asian, European, American, and Pacific.
The working hours coincide with the operating hours of banking and financial institutions, for example:
Online trading is simple and profitable
While just a decade ago trading stocks or currencies required spending hours on the phone sending orders to open positions, the entire process has now been significantly simplified.
Everything happens online and automatically, through a dedicated trader terminal. You independently submit a signal to open or close an order, without the involvement of intermediaries.
Online trading allows you to earn money with just a few clicks of the mouse.
To get started, you don't need to have complex equipment; a regular personal computer with Internet access is sufficient. Having an initial amount of capital is welcome, but not mandatory.
All necessary software and literature can be obtained free of charge.
You can trade online on both the currency and stock exchanges; these two types of online trading will be discussed in this article.
Forex rules you need to know for successful trading
To become a successful trader, you should know and follow certain Forex rules. These are essentially recommendations that outline the basic principles of Forex trading, allowing you to significantly reduce losses and avoid making foolish mistakes.
On the other hand, these are patterns, knowing which you can choose the most successful place to enter the market or, conversely, refrain from active trading.
The main feature of recommendations is that they are always in effect and their influence cannot be evaded.
This set of forex rules has been compiled by more than one generation of traders and includes all the bitter experience of trial and error.
As you work, you can create your own rules; they will help you get organized and become more successful.
The most popular Forex currency pairs and trading features
The most popular currency pairs always exhibit dynamic trends, which allows for the greatest profits in a short period of time.
The second factor that influences popularity is the spread size—the commission the dealing center takes from each of your transactions when buying or selling currency.
The third point is the availability of ready-made strategies for the chosen trading instrument, since it is much easier to use someone else's experience than to spend time creating your own trading system.
In addition, the trading time and simply the personal preferences of the trader are important: some trade only at night, while others prefer more predictable trading instruments without sharp exchange rate fluctuations.
To choose the most suitable trading instrument, you first need to conduct a brief analysis of popular currency pairs.
Basic laws of forex.
To trade successfully on the foreign exchange market, you should clearly understand the laws of forex.
Essentially, these are the basic principles that influence exchange rate changes – the price of a currency pair is the basis for all trader work.
These laws are based on probability theory and the history of exchange rate movements. It has long been known that any market is subject to patterns and any situation has a tendency to repeat itself in the future.
This is what allows us to predict the direction of the trend over time.
Forex laws are the foundation upon which all trading systems on the foreign exchange market should be built.
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