You can trade successfully if you know just a few easy pointers. Don't be worried by the sheer volume of learning material out there - must of it is just rehashed basics. In this article, I want to share with you 3 great tips to a profitable forex future.
Support And Resistance
The price of a currency pair will move up and down and oscillate like the waves on the surface of the sea. When you have a spare hour, just watch one of these charts and see how it moves up and down and get used to it.
Discover for yourself the concept of support and resistance. Price likes to move within a band but eventually it will always break out either on the upside or the downside. See where it goes next and watch as it eventually establishes a new band.
These bands can be horizontal or they can be up or down trends. It only takes an hour of watching to get a really good feel for how this works.
Technical Analysis
You must learn about technical analysis. This is the study of chart patterns. The great thing is that you don't need to know much about it to trade on it profitably.
And in your forex software (register for a demo account if you haven't already), play around with some of the charting tools. You'll see some strange names like RSI, stochastic, MACD etc. that you won't recognise. Don't worry about it but just play with these for now.
You'll notice that most of these tools work by trying to indicate when you should buy and when you should sell.
Economic Calendar
Type "economic calendar" into a search engine and see what announcements are coming up. You'll find that there are regular announcements, mostly on a monthly basis.
Watch what happens to the markets when these announcements are made. They always react.
In fact, just read a list of them. By just becoming familiar with the names, your brain will automatically tune in whenever you see or hear of them in future and you'll automatically have more interest in learning about them and their effects on the market.
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