In this chapter we deal with tools, that help you anticipate future price movements. There are many types of chart indicators, we will discuss the most common ones here. In practice, however, we advise you, that you specialize in one to a maximum of three indicators, more confuse only.
Welcome to the Gymnasium
We are looking forward to, that you have made it this far. In high school we are and with trading systems, Money Management and Personalities of FOREX Traders. With the completion of high school you should definitely have the basic knowledge to take the first steps on the foreign exchange market with a FOREX broker that we recommend.
Creating a Trading System
The focus of this chapter is on, Help you develop your own trading system. It won't take much time to create a system, testing the system then takes a little longer. You should still be patient, with a good trading system you can earn a lot of money. The process of developing a trading system can be divided into six steps…
Example of creating a trading system
This chapter should give you an idea of it, what a trading system should look like and what you need to look out for when developing your own trading system.
Forex Money Management
This section is one of the most important sections you will need to know about FOREX trading. Why is this important?? We want to earn money in our business, and in order to make money we have to learn to control it. Funnily enough, is this a topic that often goes more or less unnoticed. Most traders strive to make profitable trades without regard to the size of the account. You simply decide on the risk of the individual trade and press the “Buy” or “Sell” Button. There is a word for this type of investment, we call it “Play or gamble”!
Why You Need a Forex Trading Plan?
We have already talked about a wide variety of topics. You already have a great deal of knowledge, but you still don't have a trading plan. What I want to tell you is, You have a lot of information but without a good trading plan and the discipline to always trade on it, you will hardly be successful.
Recognize your trader personality
There are many different FOREX traders. Every trader is an individual, has its own schedule, Risk, Commitment or capital framework. Some traders have several good features, others get along well with a strong side. What I want to say, every dealer is unique. Your personality, Preferences and situation during trading, are factors that determine how successful you are.
Assessment of the market
As a trader, a big part of our work is, assess whether prices are rising or falling, whether overbought or oversold conditions prevail, to plan our trades for the current conditions. How do we do it?? What tools can help us? And how do we react to certain conditions?? This is exactly what we want to find out in this chapter. We will deal with sentiment analysis in the FOREX market.
Welcome to the FOREX Lexicon
Here we will list important terms, concerning the topic of FOREX. We are also happy to receive your suggestions!
Ask Price or Ask Price
The Ask is the price at which the market buys a currency pair. So the price at which you buy the base currency. The Ask price or also called the offer price, is always on the right side and is larger than the bid.
Usable news on the FOREX market
With all the currencies you can choose from, there are at least five to ten economic reports almost every day. Which is also pleasant if you focus on trading news, the timing of important press releases is usually announced in advance, so you can plan when the best times are for you to trade.