How To Trade Forex

There are 2 majors methodology for “predicting” price : technical analysis and fundamental analysis.

Fundamental analysis is about financial indicators or simply “news events” that affect the value of currency. You can check the forex factory calendar for that.

Technical analysis is the belief that everything can be read throught a chart. That “emotions” can be seen and recognized in the movement of price. I can tell you now thats what I focus on, and how I have been profitable. Please note that I avoid trading near important news (i dont want the fundamental information to affect my technical trades !)

So how to start trading forex ?

  1. Go to www.babypips.com and do the school tutorial training. It’s free and you will learn everything about the forex market. My advice: skip the part where they talk about ways to profit, its mostly mainstream bs.
  2. Check out the core of technical analysis such as support&resistances , breakouts , etc. There is the core of technical analysis. I believe that if you read the babypips tutorial you will already know about it. My advice: there are basically 2 schools of thought in trading: “the trend is your friend (people trying to catch a trend and ride it)” AND “buy low sell high (contrarian traders, if price is too high, better to short it than buy”). IMO contrarian is easier to do for retail traders like us. That is also how I have been profitable.
  3. Get a free live demo MT4 platform (metatrader 4) and simply… watch the charts. Try to find a pattern. My advice: try to find quirks, inequality, weird movements. Then be contrarian. If you see something that shouldn’t be on the chart, it probably means it will retrace (just like gaps). This is a very deep advice, and at the core of my profitable strategies.

 

33 thoughts on “How To Trade Forex”

  1.  Hi There,
    My name is Ariff and I am an affiliate manager of XTRADE.COM. 
    We are a Forex and CFD Broker ASIC regulated and has been in the market since 2007. 
    Our company has great results in the Asian market due to the fact that our platform is fully translated to Chinese, Hindi, Malaysian, Tagalog, +25 more languages, as well as advertisement material and our representatives are mother tongue. 
    Furthermore, we are proud to announce that few months ago we signed a contract with Cristiano Ronaldo as Official Ambassador of Xtrade. 
    Could you please refer me to the appropriate contact person for advertisement queries?
     
    Looking forward to hearing from you.

    Reply ↓

  2. Hey there, I think your site might be having browser compatibility issues.
    When I look at your website in Opera, it looks fine but when opening in Internet Explorer, it
    has some overlapping. I just wanted to give you a
    quick heads up! Other then that, terrific blog!

    Reply ↓

  3. Hello there I am so delighted I found your blog, I really found
    you by error, while I was researching on Google for something else, Nonetheless I am here now and would just like
    to say kudos for a incredible post and a all round enjoyable blog (I also love the theme/design), I don’t have time to go through it all
    at the moment but I have saved it and also added in your RSS feeds, so
    when I have time I will be back to read more, Please do
    keep up the excellent jo.

    Reply ↓

  4. Hi there! I just wanted to ask if you ever have any issues with hackers?
    My last blog (wordpress) was hacked and I ended
    up losing months of hard work due to no back up. Do you have any methods
    to protect against hackers?

    Reply ↓

  33. Pretty element of content. I simply stumbled upon your web site and in accession capital to say that I get in fact loved account
    your weblog posts. Anyway I will be subscribing on your feeds or even I success you get entry to constantly rapidly.

    Reply ↓

Leave a Reply

Your email address will not be published. Required fields are marked *