The secret of trading the forex market like the experts

Traders, you don’t have to be trading the FX market without clear vision and direction. We all know that online Forex trading is a speculative market and you need to now how to determine the two most powerful properties of trading like the experts; trending and ranging markets coupled with the right mind – sets and money management techniques. But the solution is simple because knowing how to determine the two most powerful properties of trading like the experts; trending and ranging markets coupled with the right mind – sets and money management techniques. But the solution is simple because knowing how to determine the market situation either trending or ranging is one of the major problems that many traders are facing with one of the best lucrative online businesses.

Moreover, knowing when to apply the right mind – sets and good money management techniques is another challenge that traders are battling with for now. Fortunately, the FX market is uniquely suited to accommodate both styles, providing either trend or range traders with profits opportunities. Here is the secrets of all trading.  Are you ready to learn the secret that will help you trade profitably? If yes, then the secret is “Prices will either trend or range”. That’s all. It’s really simple but clearly not that easy. You need to get clear definition of what trend is, and the simplest definition is higher lows in an uptrend and lower highs in a downtrend. Stop trading without direction!

The goal of trading the FX market is success – I mean winning percentage should be more than the losing percentage. When you understand the direction of the market either trending or ranging, then you can join the move early and hold the position taken until the trend exhausts itself.

The basic mind set of a trend trader is “you are right or you are out” and your governing philosophy should boil down to; Do today what happened yesterday. Therefore, you need to know how to predict the price movement in order to establish proper entries.

 

It is certainly substantial that ranging market will surely produce good profit opportunities. When the market is in equilibrium, you can’t really make something good out of it because you can only guess wrong instead when the market is taking a U-turn. For this reason, many traders fail due to indistinguishable direction in ranging market. But there are many range – bound strategies that involve isolating currencies that usually trades in price channels and then selling at the top of the channel or buying at the bottom of the channel. This can be a very lucrative strategy, but in its essence it is still a trend-based idea.

Range traders don’t care about the direction of the market because they believe that no matter which way the currency is traveling at present, it will most likely return to its point of origin and their goal is to harvest all those oscillations for profit.

 

Moreover, both trend and range trading requires solid and attainable goals coupled with money management technique. Do not trade without calculating your risk – reward , and  once you hit your targets quit and prepare for the next trading day. You could even decide to learn more so that you can be a better trader.

 

Trending Currencies

Which currencies tend to trend more? Well that is, of course an impossible question. The obvious question. The obvious answer is that at any given time any pair can find itself in a trend or range environment. Still, as a general rule of trading, the major and commodity pairs tend to trend more because they directly express the big macroeconomic events of the day while the crosses are currency pairs that do not have USD in them e.g. EURJPY, EURCHF etc. For a technically oriented trader, one of the great aspects of the FX market is that it trades only four major pairs and three commodity pairs of currencies.

For a technically oriented trader, one of the great aspects of the FX market is that it trades only four major pairs and three commodity pairs of currencies.

The major pairs

  1. EURUSD
  2. GBPUSD
  3. USDJPY
  4. USDCHF

 

The commodity currencies

  1. USDCAD
  2. AUDUSD
  3. NZDUSD

 

These currencies pairs could turn in more profits into your account if you know how and when to trade them.

 

Timing

The right time to trade each of the above mentioned pairs including the cross currency pairs matters a lot if you want to be a successful forex trader. You can’t run away from the fact that some specific trading sessions. And if you know when to catch your pips, I bet you that the sky is not your limit.

 

I hope you are getting valuable information reading from this blog, if you do then why not dig, stumpleupon or better still subscribe to my rssfeed

 

I recommend this trading software by one of the best forex traders around http://tinyurl.com/65njow, visit his site and you’ll never be the same again

 

Happy trading !

 

 

 

 

 

 

 

 

 

 

 

Comments

  1. I don’t quite get you can you tell more to your conversation cheers

  2. It is a quite interesting post but quite difficult to understand for me –

  3. It’s good to educate – thanks for sharing your mind.

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  1. […] But the solution is simple because knowing how to determine the two most powerful properties of trading like the experts; trending and ranging markets coupled with the right mind – sets and money management techniques. … The secret of trading the forex market like the experts […]

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