SUMMARY OF WHAT I READ ON FOREX TRADE

SUMMARY OF WHAT I READ ON FOREX TRADE

In learning how, when and what to trade the followings must be done

1.    
CHOOSE A GRAPH: Area chart: this could be any of these:

(a)  
LINEAR: This is in line format, it is the most
simple of all

(b) 
CHART: This summarizes data, it is easier to
define, does not have too much information and simple to read and understand.
Professionals however hardly use this because it does not provide full detail
information for analysis

(c)  
CANDLE:
This is a great representation of market quotes movement; it shows the time of
the movement, which could be 30 seconds, 1 minutes, 5 minutes etc

2.    
CHOOSE AN ASSET

(a)  
CURRENCY PAIRS: Value is defined by comparing currency with
another currency. The first listed currency is called the base currency while
the second with which it is paired is called quote currency. Most suitable
for beginners is the EUR/USD pair because it has lower volatility. It is traded
24 hours in 5 working days. Other egs are EUR/USD; GBP/USD; USD/CAD

(b) 
EQUITY INDICES: Indices are group of assets. Indices are
computed from prices of selected stocks or can represent a special group of
companies, such as new technology or mining. Traders can invest in movement
of group of stocks by trading only on one index. It is traded 24/7 (24
hours thought out the days of the week) Egs are FTSE 100; DAX, Dow Jones,
Nasdaq 100

(c)  
SPOT COMMODITIES: Commodities are real physical goods
which are actively influenced by impacts around the world. It is highly stable.
However the prices are very volatile because of weather, market news, USD
value, Government trade policies etc. egs are Gold, Silver, Crude Oil, platinum

(d) 
STOCKS: These are issued by corporations to raise
capital. To succeed in this trade the followings whould be monitored: Market
news, Earning reports, Economic events. Egs are Apple, Microsoft, Google,
Facebook, Twitter, Tumblr etc

3.    
CHOOSE AN OPTION AND EXPIRATION TIME

(a)  
SHORT TIME OPTION: 30 seconds to 5 minutes. Most
traders fall into this category.

(b) 
HIGH/LOW OPTION: This takes 15 minutes to 1 hour. It is
called classic type, very popular. You can benefit from use of technical
analysis as well as long term strategies, in this you can take higher risks and
invest more after proper analysis.

(c)  
ONE TOUCH OPTION: Time fopr this is 15 minutes to 1
hour. It is for thoise who like range and boundary trading. Traders predict
whether a certain asset will reach a preset target price or not.

4.    
SET INVESTMENT AMOUNT: Start with $5 and gain profit in
30 seconds on short term options. It is however good to prepare your trading
budget before you enter the market with real funds.

5.    
OPEN DEAL: Choose if price will be higher or lower at
expiration time; choose a “CALL” button if you want to invest into the rising
movement quotes; click on “PUT” button if you expect quotes to fall.

Note: it is advised that you practice at different
trading hours with your demo market before you enter the market.

A book says some traders lose and lose before they
started making gains, but what stood them out is that they never quit.