4X Currency Trading
Here we will look at learning
the basics of 4X currency trading quickly, by giving you the essential
information you need to know and no filler, just the essentials to learn to
trade the markets quickly and for big profits. We are going to focus on learning
currency trading fast and by fast we mean, giving you specific information to
learn so you will be ready, to trade with confidence in just a couple of weeks.
1.Technical Analysis the Best Method for Novice Traders
Technical analysis and using
Forex charts is the best way to learn Forex trading for novice traders. All you
need to do is spot visual set ups which anyone can learn to trade for profit.
We have covered this in more detail on other areas of the site so to find out
about the Advantages
of Technical Analysis and How to Use Currency Trading
Charts in more
detail, simply check the relevant sections of the site. Now we will look at the
areas of technical analysis, you can learn quickly and which you can put into a
currency trading strategy and trade for big profits.
2. Essential Chart Formations You Need to Learn
If you are looking at learning
chart formations, start with basic support and resistance lines and practice
drawing them to get a feel for the chart. When you are looking at formations,
the ones we really like are the triangle formations which are ascending,
descending and symmetrical triangles. There are many more but simply practice
on all of them and find the ones you like ad are confident in. Also,
don't just look for them on daily charts - use the weekly and monthly chart as
well so you can see the bigger picture and spot the big trends.
3. Best Trading Indicators
There are hundreds of
indicators to choose from, many have exotic names and are complex but there
are only around 10 indicators, I think are worth considering for
inclusion in your trading strategy. When you decide which ones to use, just
pick just 2 or 3. If you pick any more than this, you will clutter your trading
system and produce false signals. To learn about the Best Currency Trading Indicators simply visit the relevant section of our blog. Momentum
indicators are a back up tools to looking at currency trading charts but
it's the price chart and price action itself which are the most
important, parts of your trading strategy in terms of determining when to open
a position in any currency trading pair.
4. Learn About Volatility
If you don't understand about
volatility or standard deviation of price, you will never make money in Forex
trading and it's a vital piece of Forex education which most traders ignore. So
why is it so important? Picking the direction of currency pair long term is
quiet easy but staying with the trend, without getting stopped out by
volatility which takes you out on stop is one of the biggest challenges when
trading 4x currencies.
5. Read Up on Psychology
Most traders focus more on
their method, than they do on thinking about the emotional impact trading will
have on their personality and this is a big mistake. in terms of achieving
trading success, having a trading strategy which has the potential to produce
good results is not enough, to make profits you have to have the right mental
focus, to trade the systems signals with discipline, to achieve success.
6. Free Trading Systems You Need to Study
We have mentioned about the
Turtle Rules and Richard Donchain's 4 Week Rule and how important it is you
study them because:
These systems work and not only
do they work - they give you key insights, on how to make trading profits which
are:
There both simple trading
systems and as we continually stress - cluttering a trading system with to many
variables and parameters to generate trading signals, doesn't help in terms of
helping a system make money.
Both systems are based on, a simple breakout methodology which is a method of trading which will always make money. Finally, the Turtle trading PDF is packed with info on the basics of a successful system.
Both systems are based on, a simple breakout methodology which is a method of trading which will always make money. Finally, the Turtle trading PDF is packed with info on the basics of a successful system.
The PDF stresses the importance
of trading discipline, sensible money management parameters and shows you
losing the majority of your trading signals doesn't matter as long as you run
profits and cut losses. In conclusion - even if you don't want to use these
systems learn them, as they show you how a simple strategy can work and make
huge gains.
7. Best Free Sites for Education
There are many good free sites
online and three of the best are - turtletrader.com which has some great
insight on trend following and trading psychology and babypips.com which is a
good site for learning all the basics. You should also check out Youtube.com
which gives you great video tutorials and education, on all aspects of building
a trading method for profit. Last but not least, we will recommend our site
which contains over 1,000 pages of the best free currency trading information.
8. Essential Books to Read
you will find the Best Forex Trading Books on this site and these books, will give you excellent information
on all aspects of currency trading so make sure you read and learn from them.
The books we recommend are not expensive and are the10 best we have read, over
the last 30 years – we hope you enjoy them.
9. Putting it All Together
Once you have read and learned
all the material recommended, you can then put together a trading strategy for
profit which suits your personality. If you are confident in your trading
knowledge and the strategy you have developed, you are ready to open an account
and start trading but you need to pay close attention to the next point, to
make sure you will achieve trading success.
10. Your Ready to Trade but Beware
There is a saying which applies
in many areas of life and its this:
“ Seeing is believing but
feeling is the truth” (Thomas Fuller)
This quote is very true when
you actually come to trading 4X currency markets, when you come to open your
trading account. When you learn the information we recommend above, you will be
able to to see why getting a strategy together which can make money is easy
enough but when you come to trade it, you will find how difficult, maintaining
mental self control can be and you will feel the temptation to do what you
shouldn't.
The reason this is so is when
money is risked, the pressure is on you and you have to cope it. When you are
trading for real, you don't just see trading signals you actually feel them and
their impact on your mind.
It's the ability to perform
under pressure and stay calm which is the mark of a professional in any
business and that includes Forex. Like competitive sport for example, when a
player needs score a penalty in football, in the dying seconds of the game to
win the pressure is on! It's the same in currency trading, you need to be able
to keep calm and trade non emotionally, when the pressure is on you. The only
way to do this is to be confident in what your doing and this comes from the
knowledge you have which is reflected in both confidence and discipline.
In terms of your mental attitude, you just need to make the choice to adopt the
psychology needed to win.
