Taking your trading of foreign currency exchange to the next level is fairly easy. Just force yourself to look at your favourite currency pair in a new light. For instance, if you are used to trading with “Bollinger Bands®”, “Keltner Channels” or “Donchian Channels”, scrap them in favour of an “Ichimoku Cloud”. “The Cloud” provides exactly the same information as the aforementioned Bands and Channels do, but it also forces you to consider other factors (e. g., support and resistance levels) when making a trading decision. This, in turn, forces you to think in a more holistic fashion, which should produce a greater level of per trade profitability.
Another thing that you can do is specialise in only 1 or 2 currency pairs. This will stop you from wasting a lot of time looking at the news and charts that really are not producing the kind of profits that you want to see. If you enjoy trading the AUD/USD, then pick the USD/JPY to make a daring trading duo.
What Is Special About Trading Foreign Currency Exchange?
Among all the world’s major capital markets, forex is unique. It’s truly global – both in terms of the contracts involved, the participants and forex’s ability to allow investors to trade at any time of the night or day, except on weekends. In addition, forex accounts come with very liberal leveraging abilities that make for exceptional “day trading”. When you combine this situation with the fact that there is no discrimination against selling (as opposed to buying), you realise that forex may be the last truly liberalised capital market in the world. It’s also exceedingly democratic; “micro” and “mini” accounts are available for as low as a $50 initial deposit from a variety of brokers located all over the world.
Building On Your Trading Skills With Foreign Currency Exchange
If you’re new to forex, sign up for a “demo account” before you jump into live trading. “Demos” are exactly like real accounts, but they do not use your money. So, they represent a risk-free way of learning to trade well. In addition, since no 2 demos are alike, you can learn a lot by signing up and comparing different accounts. Shop around. Some demos are proprietary; many use “MetaTrader” as their key software component. Others resemble “TradeStation”. If you enjoy writing code, then MetaTrader is probably for you. If you’re more into charting and trend tracking, TradeStation may be more appropriate. If you can’t make up your mind, open 2 (or more) accounts! The possibilities are endless.
Getting The Best Results From Foreign Currency Exchange
There is a lot to be said for specialising in 1 or 2 currencies. It narrows your focus, allowing you to concentrate your energies on becoming successful in a shorter amount of time. It lets you see the trees in the forest – right down to the moss level – very quickly. As a result, you become more discerning and less liable to pick a pricing move that may not pan out. In addition, each currency pair has different indicators that appear to work better than other indicators. For instance, using a “Fisher Transform” on a 15-minute chart of the AUD/JPY has merit, but the USD/JPY (on a 15-minute chart) can be tracked more successfully with a “Know Sure Thing” indicator.