Page 166 – XTrade

Why Learn Forex Basics Online

Most trading mistakes and biggest losing trades arise from oversight and misjudgment on the part of the trader. If you learn forex basics online, and hopefully wisely. You will be able to assess the market better. Steadily profitable trading is based on digging deeper into the information available. The forex market is not different to other financial markets, but the information sources are different. When you learn forex basics online, it allows you to spot patterns and movements in the market. And some concepts are taught in the basics class, but they are not basic at all. Concepts such as volatility, price patterns and how some brokers move their variable spreads. Forex charts in their available form may not be sufficient to be able to decipher market action. Forex charts for example cannot tell you, at a glance what kind of demand there is on a currency pair. But the widening spreads of some large broker with variable spreads does reveal this price action.

Learn Forex Basics Online and Be a Market Detective

If you learn forex basics online, and in great depth, it will allow you to think and act like a police detective on the currency markets. Because if you look at how police detectives solve crimes, all detection work starts with very basic facts and information. The detective’s work involves figuring out the criminal’s motivation, and how the evidence was created. In the forex market, when digging deeper into information, things such as fundamentals and price action are always on the trader’s mind. The basics of forex trading seem so basic and common sense, as if there is no need to dig further into them. But they have depth and may contain key clues. Wise CFD forex traders pay attention to what is happening around in the market. And how other brokers handle trading. Variable spreads and liquidity are two sources of information on the non CFD brokers. Because all these spot market brokers handle bigger and often more risky market conditions, where the forces of supply and demand become evident. The wise CFD trader wants to stay away from the hidden risks and trading inefficiency of spot market forex brokers, that’s why they trade through the safety of CFDs. But they still pay attention to what’s going on with other brokers. Liquidity problems and changes in supply and demand can change trends in a currency pair. As these markets are huge, but still finite. The wise CFD trader spies a lot on the markets, thinks, and then trades selectively and at large size.

Why You Should Learn Forex Basics Online — Computers cannot solve crimes, they cannot trade the currency markets either. That’s why any trading system that appears to be well defined and simple, so as to be easily run on a computer, is not enough to beat the forex market. Instead, traders should focus on the basics of the market and look for clues. And it takes looking into many samples of evidence to find these few clues.

There is No Reason to Emulate Other Traders’ Systems

The forex market provides opportunities to many traders, but just because someone is profitable it doesn’t mean you should try and emulate their system. Because that system may be unstable and deceptively fragile. More importantly, it may not be focused on the facts of the markets. The kind of forex trading international traders do, is highly diverse and complex. One trader is focused on one currency, while another is focused on a totally different currency and local economy. Attempting to emulate any of these systems, in any way, will fail to include the detective work and methodology that these traders do. The trading system by itself can be described in a paragraph, but is only half the battle. And the detective work of these traders is highly personalized and unique. Fortunately, it is possible for traders who have learned all the basics, to develop their own detective’s mindset. And to customize such trading systems.

The Online Forex Trading International Community

The online forex trading international community is active at all times, through quality forums and free ebooks in the best forex sites. The online forex trading international community, as a whole, is all about helping traders. So that new traders learn from veterans. And everybody can actually learn something valuable from someone else. Even veteran traders can learn a thing or two from the younger generation, especially when it comes to new radical ideas. So information flows in all directions, because all traders come up with new ideas. The new trader may make too many mistakes, and not have a profitable trading system. But their idea might still be an innovative one. That idea in the hands of a veteran trader may be significantly enhanced. No forex trading strategy is ever useless or bad, each one of them has something unique to offer, even if it is mere food for thought. The community brings traders together, in a unique way. Because feedback is impartial, and new traders are told the truth about the risk in the market. And how difficult it is to make it. Naive ideas such as trading online made easy are quickly abandoned. In favor of realistic but still optimistic ones.

The Online Forex Trading International Community Tells it Straight

Unlike software vendors and marketers. Online forex trading international community members are honest. If trading is not for you, they will tell you so to your face. And will even hurt your feelings if necessary. But that’s what telling the truth is all about, is not about acting nice. Because the forex market is a tough place to be, and the trading battle takes no prisoners. Delusional new traders who always act on their own, think they are the best in the world. And so they choose to avoid contact with other traders and see what their opinion is. Delusional traders may have been told they are good and clever, by some paid forex mentor or course instructor. And this boosts their ego. But the markets help bring them back in touch with reality, in no time. Delusional and overconfident traders are crashed by the market, and so is their pride. Because the markets are not forgiving, especially to proud people. Social traders on the other hand, may be very secretive about their system, but are still open to criticism. There is no reason to reject the advice of other traders. No good forex trading strategy was ever developed without taking into account harsh criticism.

Pride is for Idiots

Traders who are serious about learning and understanding the forex market, are open to tips and attacks on their personality. Because that’s what the market itself will always do. It will try and intimidate the trader to a crashing point. Proud traders are not thinking straight and believe that they have found a system that no one else has. They believe that they can predict this or that move, or handle day trading forex live. And the delusion is fueled by random short term success, which makes trading even more dangerous. 1000s of forex accounts would have avoided getting blown. Should the traders of these accounts have followed some advice. A wise veteran trader can detect a trading account which is about to be blown, by looking at past trades versus the charts.

Using Foreign Exchange Currency Trading Basics

Online Foreign Exchange Currency Trading

Foreign exchange currency trading methods can be greatly enhanced through fundamentals. And also more importantly through the understanding of how the market perceives uncertainty and risk, based on fundamentals. So instead of trying to assess the fundamental events and classify them as either bad or good for the market, the focus should be on uncertainty. Markets in general, do not like uncertainty, and solid rallies occur when there is the least amount of uncertainty possible. Foreign exchange currency trading methods can be based on this kind of analysis alone. Coupled with one more day-specific indicator. By looking at the economic calendar and the economic events that have fundamental significance, traders can clarify things to some extent. The more important an economic event is, the more uncertainty it carries. And the market in question, a national currency in the case of forex. Will weaken in the days leading up to the actual event day. So simply put, it’s all about selling on uncertainty and buying on absence of uncertainty. The actual economic events may be seen as either good or bad, or even mixed by the media. And that is not relevant to the forex trader. Good currency trading strategies can be based on this concept alone. So that the trader is always prepared by being on the side of the market which is more likely to prevail over the next few days.

Advance Your Foreign Exchange Currency Trading — Forget all about bad and good news. Trading is all about selling on uncertainty, and buying on certainty. Perception of bad and good news never made any sense anyway. When was the last time a market moved in a way that made sense relative to the perception of the news? Never! This also true in investing. An investor would rather invest in a high tax country with a stable tax regime, rather than in a low tax country in an uncertain tax regime.

Uncertainty in Foreign Exchange Currency Trading

Uncertainty in foreign exchange trading seems easy to define and detect. But in practice it may not be so easy. Traders need to stay focused on the news and events, and only watch out for those events that draw attention and concern. Market price movements prior to economic announcement days can be studied carefully through the observation of volatility and more. One such indicator is the movement of spreads of spot market forex brokers. When their spreads widen it signals higher uncertainty in the market. And this goes hand in hand with higher volatility and the expectation that any rallies will fizzle out. This means rallies on the single currency that carries the uncertainty, so the actual currency pair will trade either up or down as a result. So for example widened spreads on EURUSD signal uncertainty, but if the expected uncertain news has to do with the US dollar, then the US dollar will be the weak link. And the EURUSD pair will risk recovering from any declines. So traders will be looking to buy such declines and avoid going short the pair. Profitable currency trading strategies make use of these facts, and the key basic indicators are spread variation, volatility and breakouts that seem too good to resist. Breakouts in fact often seem good in such cases, but you have to realize that since uncertainty is higher than normal. And because the economic news is still due to be announced, such breakouts are bound to be false, deceptive and confusing. Even if the market finally breaks out in the same direction, for good, the premature breakouts are still a trap, due to high volatility. As the market will take out even large stop loss orders. Foreign exchange currency trading online for beginners fails to take these facts into account. And as result new traders stay too focused on chasing price. Which is not the best way to trade.

There is No Need to Reinvent the Wheel

There is no need to reinvent the wheel to make a good profitable trading strategy. The basics of the forex market provide enough clues. These clues allow you to call the market for about 50% – 60% of the time. And this is more than enough to stay profitable. So instead of analyzing many markets and have all these different foreign exchange currency symbols in your mind, you can focus on just one or two. But dig deeper by looking into spread variation, perception of market risk by brokers, volatility and price moves that seem to make no sense. The key point here is to know that you always want to sell uncertainty, and buy absence of uncertainty. The rest of the work is figuring out how these factors will end up impacting the actual currency pair you trade. Markets rally on certain outcomes, it doesn’t matter if a certain outcome is bad. They still rally on it, because uncertainty has been removed.

Learn Foreign Exchange Currency Trading Online for Beginners

Foreign Exchange Currency Trading Online For Beginners And More

Foreign exchange currency trading online for beginners shapes new traders, and instills solid ideas in their minds. Even if some concepts are wrong, they still have a positive impact on a trader’s learning curve. This is because good traders have been through both the bad and the good of trading education. And both of them help them develop their judgmental ability. Foreign exchange currency trading online for beginners is often seen as redundant by new, impatient traders. Who are willing to jump into the forex market right away. While having very little knowledge. But the actual training that beginners get through the systematic approach does help traders customize their approach, and specify their needs. Wise beginners practice currency trading and live through the early failures that all currency trading strategies are bound to bring at some point. Systematic training is all about testing classic trading concepts and finding the ones that are within the trader’s comfort zone. Random training on the other hand, may still work but will result in a longer learning curve. Ideally, one wants to get this early training through some basic course, or through few books. Without skipping any chapters. After that, the trader is free to decide what concepts to adapt, and which ones to reject. Identifying what to reject is just as important as choosing what to follow. This helps shape the trader’s ability to judge and decide.

Foreign Exchange Currency Trading Online for Beginners Sets Direction

Foreign exchange currency trading online for beginners sets the direction. They all want to be profitable traders. But the learning curve of the forex market can be so painful and intimidating. That the majority will quit at some point. People with a very strong will set very firm goals, early in their training. And these are the people who will never really quit pursuing success in forex trading. Even if it takes long breaks, away from the markets, and a lot of change of currency trading strategies. The goal will always be there. Only the absolutely determined traders reach success. And being determined doesn’t mean attempting to walk through a brick wall. But rather taking breaks when things go wrong, and figuring out ways to go around that brick wall.

Why Learn Foreign Exchange Currency Trading Online For Beginners — Early failures lead to loss of hope. The space program encountered so many failures and problems that most people would have found it impossible to continue to believe in and to pursue. And yet the perseverance of a minority of people did the impossible, it put people on the moon. Always remember that during your early failures in forex trading.

Quitters Don’t Know How to Try Harder

Quitters in the forex market, quit early because they act a lot, and don’t think the problem through. So that at some point the most convenient decision is for them to quit trading. So much is their disappointment that they might not even see foreign exchange currency symbols again. And understandably so, because nobody takes defeat nicely. But that’s the reality of forex trading. Some people will never be profitable traders. Mainly due to lack of perseverance. Those that make it through their learning curve are people with a resilient personality. A personality that accepts defeat as a lost battle, but not defeat for the entire war.

Using a Foreign Exchange Currency Symbols Table

Use Foreign Exchange Currency Symbols Table

A foreign exchange currency symbols table provides all basic currency structure at a glance. So that the trader can see which currency pairs are likely to be correlated with one another. And to make better decisions as to what to trade. It’s important when trading many currency pairs, not to fall into the traps of correlations. Because open trades will tend to lose or win all at the same time, which is a problem from an account margin point of view. A foreign exchange currency symbols table helps check various currency pairs, and even bring more currencies into the equation, so as to risk possible risk when necessary. So that if the trader for example happens to trade EURUSD and GBPUSD, they can also consider trading EURGBP when needed. As a way to specifically trade price movements in the Euro and the British Pound, in isolation from the US dollar. And this is only an example, in reality there are many days around the year, where a trader may have to switch to another currency pair. So that profits are maximized. Wise currency trading strategies require the trader to know how to handle unexpected risk, and even how to temporarily hedge that risk. Such risks appear in the market all the time, and day trading forex live does require taking quick action. But this in turn requires that the trader chooses the optimal, best suited currency pair on that day.

A Foreign Exchange Currency Symbols Table May Seem Confusing

A foreign exchange currency symbols table may seem confusing to some traders, in the way that one pair relates to another. And risks are well hidden, as correlations are evident in the long term only. And correlations can be enormously deceptive and difficult to figure out. But for specific day trades, it is possible to capture a move in one currency pair, by trading another pair as a proxy. And this is because that other pair may provide more price movement. The analysis is one and the same, and based on few key currencies. But trading one single pair all the time may limit the trader’s ability to maximize profits and minimize risks. That’s why knowing the relations among currency pairs can be so useful. Ideally one wants to know how to use different pairs for proxy trading, as they practice currency trading one day at a time. Especially in day trading forex live, where trades last minutes rather than many hours.

Practice a foreign exchange currency symbols table — Tables can provide a basic guidance into relations among currency pairs. Sometimes a correlated pair may be better than the one you usually trade.

The Risks of Correlation and Proxy Trading

The risk lies with correlation trading, so that EURUSD and GBPUSD for example are correlated, but far from perfectly. Such correlations come and go from time to time, and it is possible for certain events in the markets to break the patterns entirely. Stronger correlations exist between commodities and currencies, such as the one between crude oil and USDCAD (strong negative correlation). Traders need to know what they are doing and know the risks. The important thing to remember is that correlations are long term, and may fail catastrophically in day trading and even in medium term trading. Whereas bringing in a 3^rd currency pair, to trade the daily impact on two other pairs, such as in our example above, does work for day to day trades and day trades. Because if you look at them as fractions, we simply trade the movement between the nominator parts.

Watching Price Action on a Live Forex Charts Platform

Generally speaking, the wise CFD forex trader is not a disciplined trader and always looks to think deeper. Because they will have to fade and disobey some of their best indicators each and every day. But in day trading, due to time limitations and the pressure involved, especially when dealing with losing trades. There is the need for some discipline, so that time is managed efficiently. A live forex charts platform can be handled best when the trader follows a simple routine action. And this is for reading the charts faster, and only the relevant ones. The wise CFD day trader looks at a couple of different time frames, and few indicators. By confirming price action on two different time frames on the live forex charts platform, mistakes are avoided. Day trading forex live always requires taking fast action, within the best possible degree of statistical accuracy. No forex trading strategy is complete without an element of doubt and personal judgment. Day trading doesn’t leave much time for such thinking. But it is nonetheless possible to think the entire trading session, in advance. So that before the first trade is made, some risk areas are taken into account. It is up to the trader to decide how disciplined they want to be during fast trading action. All that matters is minimizing confusion and the chance of making mistakes. And do not assume that you will not make dumb mistakes. Because when working under pressure we all make the dumbest of mistakes.

Use a Live Forex Charts Platform — When working under pressure, during medieval naval battles, the sailors had to work in discipline so as not get in each other’s way and so as to know where to find everything. They had to always walk through the corridors while having the sea on their right side etc. That’s all in the interest of saving time and avoiding collisions among sailors. But that’s where discipline stopped. The captain was actually allowed to break the classic rules of engagement and do many odd things. And that’s how day trading needs to be. Too much discipline doesn’t work, but total abscence of discipline and order doesn’ work either, due to the element of time pressure.

A Live Forex Charts Platform is Seen as Finite in Day Trading

New day traders have the tendency to deal with open losing trades the wrong way. That is having a lot of confirmation bias. And jumping from one chart to another seeking for the one clue. That will confirm their original trade was right. By applying some discipline here, they could eliminate this problem, so as to make their chart analysis finite and limited. So that it doesn’t involve more than 2 or 3 charts. If the trade is confirmed to be a loser on these 2 or 3 charts. Then that’s it, it’s a loser and it has to be closed or hedged. There is no point digging further into the charts. That’s discipline in day trading! It’s easy to get carried away in the convenience of a live forex charts platform. Thinking that we will find confirmation on a single chart somewhere. Day trading forex live requires being ruthless in that regard and taking losses when being very wrong. Some losing trades can be hedged with another trade, and may possibly turn around later in the day. But because there’s no time to think, hedging comes to the rescue, all through CFDs. Once the losers have been hedged, the trader can think freely, under no more pressure.

Day Trading is Intimidating Due to Pressure

Day trading is perhaps the most intimidating kind of trading. Since emotions run high. Even veteran traders find it difficult, as history doesn’t exactly repeat itself. The forex market can be handled though, through the right blend of discipline and rule-breaking, all at the same time. Forex trading info sources tend to advice against breaking any rule in day trading. But it’s really simple, all that matters is getting pressure out of the way. You only need to be disciplined until the pressure of the moment is gone. After that, rules can be bent or broken. That’s all there is to it.