Initially many thought that if an online business it’s very easy. But after their plunge, then find some difficulties. One of the popular online business now is the business of forex trading. Forex seemingly very easy, but in fact for success in the forex business is very difficult. A lot of newbies who are looking for a powerful strategy even those willing to sacrifice a lot of money in forex, but have not been successful, too. Did you know if in fact we only need to know the 4 basic strategy for success in forex trading and earn a huge profit from the trades we do? Only four strategy course in basic knowledge. Next, to each of basic strategy are developed according to the personality of each one of us.
Why a strategy or technique that basis need.?
A building will stand fast when in a strong base though elevated. If the building does not have a solid foundation, no doubt buildings will easily be faltered and quickly collapsed. If such is likened to the forex business. We will be successful in forex if we really learn the business from the bottom first, then developed back according to our ability. Just as the first elementary school, junior high school, then high school.
4 basic strategy for success in forex trading
We just have to learn and understand this basic 4 only. After that it was only we can know what will be successful, we will have the same fate as other failed trader. For that same shared let’s discusses what are the 4 basic strategy for success in forex trading.
I. Always trading after important data released
Trading after hight impact news will always benefit the US. Sometimes this can be only we miss. So when high news release, we will be having a lot of harm. Yes if our position is correct if the wrong right can be so fucked up affairs.
Hence it is advisable to always wait for the real data is issued. After data about the important news published, only then can we know the will where the direction of price movement? To learn more about hight impact news and where will the direction of the price of its currency, we need to learn fundamental analysis. By the time the news was released, sometimes technical indicators could be wrong. For this we need to wait for news that triggered the price movement very quickly, then we do the open position after we really know where the actual price direction. We normally have to wait for the first candle in the lid.
II. Using a combination of Technical and Fundamental indicators.
As described above, when we enter a currency market was affected by a news release we need to combine two pieces of combination between technical indicator with indicator fundamentals. Many traders instead of just using technical indicators only, or only share a fundamental indicator only. This is particularly at risk once the movement beyond the boundaries of reasonableness.
What the heck is a technical indicator that? A technical indicator is an indicator that is attached to the currency in the charts and made with mathematical formulas and compiled using programming code. This indicator helps us analyze price movement history chart based on the price of the past.
A fundamental indicator
A fundamental indicator is an indicator of based on news about the State of the economy of a country in a currency, we will analyze. Some online sites provide lots of current news about currencies and the possibility that can happen based on the currency. In analyzing the use of fundamental, we should be a little careful in determining the intent of the news.
III. Using even numbers or rounded figures in determining the Take profit/Stop Loss
If we look at the history of currency movements, usually we see the price closed down and turned on the currency price or even-numbered round. Even the currency price is usually closed usually like 1,100, 1. 200 and the other. This refers to the State of the selling we do. Offer price or purchase price definitely found the round.In fact, academic studies have shown that the big round number/even numbers have a huge effect on the major currency pairs so that the round number can really be used as a tool of the trade that stands on its own.
IV. Just open a position near Support and Resistance
Have you ever watched where the price will be right rejects and reversal.? If we observe the chart currency, every currency would experience a reversal in support or resistance.
To reduce the risk, of course, we must be only open positions near areas of support and resistance. In addition, by doing this, we certainly can control our physiologies as traders. In addition, there are many benefits we can get with open positions in support and resistance. Support and resistance are gaining profit easily. Because this strategy can be applied without need an additional indicator, so we don’t need to learn a lot of trading strategies.
Now we have already described 4 basic strategy for success in forex trading. we can used and try one by one starting from now. Believe me, we will gain an advantage in trading with ease and success as traders in Asia.