How to Day Trade ForexBy ETHAN of Moneyvally.com
Learn to day trade forex. But I want to make a few facts very clear before you
embark on your journey of trading. These facts should be the foundation of any
system that you develop.
The most important thing that you should make very clear and understand is that is not a
get rich quick scheme. Skilled traders can and in fact do make good profits in
trading. However like any other business whether small or big, success just doesn't happen
overnight, in a few weeks or in a few months. You should use this great formula for success:
Profits=Patience+Practice+Persistence.
There is no substitute for hard work and diligence. You should make it very clear. First
practice trading on a demo account. Do not open a live trading account until you become
profitable on your demo account. Pretend that virtual money is your own real money when you
trade on the demo account. You can only be successful if you stick to a system and a plan.
Double you demo account first, three times in a row.
In the beginning, just choose two major currency pairs that you will trade. It becomes very
difficult to keep tab on the all four. You need to start with a major currency pair because the
spread is the best and they are the most liquid. The EURUSD pair is the most commonly traded
pair and usually has the best spread because of its liquidity.
USDCHF is the most volatile pair among the major pair. It moves the most during the trading week.
USDJPY moves a lot on the news out of Japan. GBPUSD is the most stable among the major currency pairs.
You should follow and understand the daily news and analysis of the professional currency
analyst on a daily basis. It is important for you to get a bird's eye view of the currency market
s. You should also know and understand what the key technical support and resistance levels are
in the currency pair that you want to trade. You should know the news that affects the prices of
the major pair that you want to trade.
Support is the predicted level when buying pressure overcomes the selling pressure. It is at
this point the currency pair moves up on the charts. Buy at the support level. Resistance is
the predicted level when selling pressure overcomes the buying pressure. It is where the
currency pair moves down on the charts. Sell on the resistance level.
Fortunately all the best news and analysis is available freely online.
While you are reading the technical news and analysis, write down on a piece of paper what
direction the analyst are saying about the currency pair that you are trading and the key
support and resistance level.
You should learn technical analysis and how to use technical indicators. Never ever trade
without stop losses! Learn how to use technical indicators on the charts. Learn to be patient.
It is important when you are trading to be disciplined. Stick to a plan. Don't just trade your
gut feeling. Depending on your risk capital and strategy, set your stop losses accordingly.
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Many novice traders buy cheap Forex robots and believe they are going to make an income for life, with no effort and they end up getting wiped out. If you want to win understand this - you need to learn skills get confidence and trade with discipline and a good Forex course can help you do this.It's a fact that 95% of traders lose and if you could really make money while you sleep the whole world would be trading and not working.
