Dear traders, I welcome you to this blog please sit back and relax while I will be analyzing to you the secret of trading the forex market like the gurus.
Without a clear vision you don’t have to be trading the forex market because forex trading is a speculative market and you need to know how to determine the two powerful properties of trading like experts.
With the research I made, I notice that many of the forex traders are facing lot of problem but the solution is simple because knowing how to determine the market situation is what most of them complaint about either trending or ranging.
Nevertheless, knowing when to apply the right mind - set and good money management techniques is another problem that forex traders are battling with. Now, you wouldn’t believe that forex market is uniquely suited to accommodate both styles, providing either trend or range traders with profits opportunities.
The secret is simple as abc once you get a clear definition of this two powerful word ‘‘Trend or Range’’. Without no any argumentation the simplest definition is higher lows in an uptrend and lower highs in a downtrend. Therefore, trading without direction will definitely put you into a great loss.
The aims of trend trader is you are right or you are out and your governing philosophy should boil down to; Do today what happened yesterday so you need to know how to predict the price movement in order not to loss.
Categorically, ranging market will surely produce good profit and when the market is in equilibrium you can only guess wrong you can’t really make something tangible out of it and for this fact, many traders, due to indistinguishable direction in ranging market, fail.
Range traders don’t care about the direction of the market due to the fact that their basic mind set is no matter which way the currency is travelling at present, it will most likely return to its point of origin and their aims is to harvest all those oscillations for gain.
Moreover, both trend and range trading requires solid and attainable goals coupled with money management technique therefore, do not trade without you calculating your risk reward, and once you hit your target, quit and make move for the next trading day. mind you over trading might easily turn you down so within this time you could even learn more so as for you to become a better trader.
As a general rule of trading, the major and commodity pairs tend to trend more for the fact that they directly express the big macroeconomic events of the day. currency pairs like EURJPY that do not have USD in them are crosses.
Forex market trades only four major pairs and three commodity pairs of currencies. The major pairs are USDCHF, EURUSD, USDJPY and GBPUSD. NZDUSD, USDCAD and AUDUSD are the three commodity currencies and they could turn in more profit into your account if you know when and how to trade them.
If you want to be a successful trader you needn’t run away from the fact that some currencies reacts profitably at some specific trading session cos’ the right time to trade the above mention pairs including the cross currencies pairs matter most and if you know how to catch your pips I bet the sky is not your limit.
I hope you get some valuable information from reading this article,
Direct all question, comment or additional information to my email . Happy trading
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