It is good to know the Forex Market is split into 3 major areas – Technical Analysis, Fundamental Analysis and Trading Physcology. You also need to learn the basics of trading.
Tip 1: Learn the Forex Basics
Before you start trading there are certain things that you need to know and learn. Learning and understanding the basic concepts is extremely important and the starting route that you need to take to become successful.
Tip 2: Technical Analysis
Technical Analysis is the study of charts and price action of any particular currency pair. This is very popular among traders. It involves finding the correct resistance / support lines, drawing of trend lines, use of indicators, pivot points and much more.
Tip 3: Fundamental Analysis
Fundamental Analysis in Forex is a type of market analysis which involves studying of the economic situation of countries. This will enable you to trade currencies more effectively. Figures and statements given in speeches by important politicians and economists known as economical announcements can have great impact on the currency market moves. In particular, announcements related to the US economy like Non-Farm Employment Change and FOMC are typical news releases that traders keep an eye on.
Tip 4: Trading Physcology
Having a great trading system and a large account it is pretty useless if you don’t control your emotions while trading. Most probably you will wipe out your account. You need to be disciplined and follow strict money management rules. Furthermore you need to control your fear and greed. Are you afraid to lose money, so you just let go by a good trade? Or are you in a trade and you are in profit and you want more profit? In the meantime the market turns around and now you are in a loss. You must be disciplined and follow your trading strategies.