Learn Forex trading and how to become a profitable trader using a proven formula. Most traders over think and over analyze their charts and let their emotions get in the way of their trades. The truth is, trading is extremely simple and not so complicated. There’s only really two critical things that need to be assessed in making a trading decision.
I am going to give you the very basics so that you can learn forex trading and begin applying these methods immediately for long term trading success. The problem with most traders is that they tend to over complicate things, when in fact trading is all about simplicity and following a definite plan that you can stick to day in and day without your emotions getting in the way.
For our purposes here we are going to focus on technical analysis and by that we mean focusing on viewing charts and making our decisions based off of price action for a particularcurrency pair. Many traders believe they need to use tons of indicators and have all indicators in agreement to make a trade. Firstly, don’t make things complicated. If you want to learn forex trading the right way, you need to clear your charts of all indicators and focus on price action.
[eafl id=410 name=”Fap Turbo” text=”Fap Turbo”]Now, indicators are not bad, but the problem is that they lag, meaning their data is based off of what price did in the past and not what it will or may do in the future. For that reason we use only two factors when making our trading decisions with the first being support and resistance. Take a look at the chart below and notice how price bounces off of support and resistance. You’ll notice that during the first few bounces price reverses, these points are great places to take a trade.
While you learn forex trading one rule of thumb on any trade is to manage your money properly. A good example of this would be your risk to reward ratio. For example, when you plan a trade, your trade should win you back four times the amount you may end up losing. This means you only ever need to be right twenty five percent of the time to be a profitable trader. This is basic stuff, but it’s something that one should definitely practice in order to remain profitable. Most full-time traders and hedge fund managers are right less than fifty percent of the time, yet they are still extremely profitable because of proper money management.
Secondly, we use trend lines to analyze price action and base our trading decisions. Take a look at the chart below and you can see how price bounces nicely off of trend lines. You’ll notice that once their established higher probability trades can be made.
Our #1 Tip To Confirm Our Forex Trades
Lastly, learning forex trading can be a challenge especially for new traders. Dealing with emotions, schedules and putting into practice a positive plan are different factors that each and every one of us has to deal with while trading. However, we like to solidify our tradingdecisions with automated software. This software helps us finalize our trades and when our charts match what the software or signals service is presenting to use, we know it’s a soundtrade.
There’s one piece of software we’ve been using for 2 years now that’s been extremely accurate and it’s great for both new and experienced traders. You can check out this software here at: Learn Forex Trading.