it is also equally necessary to watch the charts to be able to identify what timeframe the chart is currently in. It is extremely important to know how to read forex chart. There are four hour, 30minute and even one minute charts and you don't want to get them confused. You must decide which particular chart is the right one for you. Once you choose a currency pair, you will be paying the ask rate. When you sell you will be using the bid rate. After that, you need to decide what your entry and exit will be. Your exit should be higher than the current bid rate only if you're shooting for the long position. If you want the short position, your exit should be lower than the bid rate.
Currency Conversation Chart
Forex Trading : historic Currency Conversation Chart - Why is it Important to Me?
Short term trading as commonly known as day trading strategy is the most currency exchange traders system. Day trading are consider as more psychologically excited and more profitable compared to long term trading strategy as it can be done frequently. Personally, I'm agree with that. Eventhough, day trading isn't the 1st choice in my forex trading.
I treat my currency trading, often as an investment, not a game, nor gambling. As a common investment, it must be done by the way that I assumed it has to be done. As for me, investment ia a matters of patiently, high precision of forecasting and calculation which backed by a solid and responsible historical info. I'm using 75% of my currency trading funds to trade long term, and 15% to trade short. I treat the other 10% as an 'account maid' as i dislike to see my account shows $0 in its account balance holding. ( These numbers isn't an actual numbers, its just often close to that ). That is not especially important. What i wanna is, for these several years, i kept profiting in my trade by employing my private easy rules, isn't that whats traders want?
By writing this article, i wanna share my simple method in my long term trading to other traders that may still confuse in figuring out what trading system should be utilized in their trading. There are 2 critical factors that should be remember in running this method.
one. Don't use too safe stop loss order
I'm shielding my very own trade by employing stop-loss order at 50pips or more. Many traders may thought that the lower stop order are more safe. By my own experience, setting a 'too low' stop loss order is just means that I'm betraying my very own trading syste, its killing this system.
2. Don't use too high leverage
I'm using a mazimum of 10:1 leverage, less is better -- if you're attempting to find a higher profits, start to consider to funding your trading account with a larger funds, it's miles better than taking a higher risk.
Whenever the currency rate price that you pick is just about that lowest rate ( 10pips or so ) just get it. And check the new chart daily. But never forget to don't be too greed. When it rise up for 20pips or so.. Sell it! As straightforward as that. It just need to be a little patient to do that.
Compared to the frequent day trading, my methods are nothing when you're looking for high profits trading. It might appear to be just wasting a time to do so. But ask, 'would rather you choose, risking your cash all day long ( and should be your eyes health if you're starring at your personal computer or notebook monitor all the time ), or a more certain profits with a little patient?
you'll try at 25% long : 75%short or 50% long : 50% short to test this strategy if you would like to. Or you may stick with your old trading behavior. In the final analysis, its all up to you treat your trading. However, our greatest teacher of all is still our own experience. Personally, i'd rather choose a sports gambling than a day trading if comparing the risks and the frequency inside both of them...
http://www.articlesbase.com/finance-articles/currency-conversation-chart-how-to-read-it-1127571.html
