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Forex Charts Analysis Wise Traders Do

Forex charts will always be confusing to traders. Because there is no universal truth about these markets. It’s not always currency pair A leading B, but rather B can also lead A. The fact that one currency pair, such as EURUSD has the biggest trading volume, doesn’t make it a leading pair at all times. Low volume correlated pairs can also lead, just as easily. And the signal on EURUSD turns out to be a false one, is not as if EURUSD doesn’t give off false signals. Forex charts therefore will always create confusion to traders who think and act through an absolute mindset. Various good forex trading strategies can still be developed and implemented. All the trader has to do is identify the uniqueness of each currency pair, and what makes that pair unique each day. Wise CFD traders are very selective traders, and have learned to do just that. This is also why generic trading systems fail, because their approach to trading is quite naive and crude in nature. Forex robots also fail, because of this fact, because they cannot think like humans do. So as to identify what’s unique in any given trading session. Foreign exchange currency trading online for beginners can be a great learning experience when one learns to think wisely. Moreover, trading systems that treat each trading day as unique, help the trader overcome routine life. And overcoming routine makes trading much more personal and interesting. The charts will always be confusing to many traders. Because their learning lacks depth and the capacity to deal with the inner workings of the forex market. Only wise traders, traders who take initiative and question established opinion make progress. We all have seen the forex market do all kinds of crazy things. Things that defy belief, where a currency pair defied the best indicators and the unthinkable move happened. And not only it happened, but the pair in question moved by 200 or 400 pips in the unthinkable direction.

Forex Charts Traders Analysis — Momentum is tricky because it does act as a leading indicator at time, as well as a lagging indicator at other times. Therefore the old advice of ‘the trend is your friend’ is not really entirely true. Market momentum can go up, it can slow down and then reappear in the same direction. It can also reverse when you think it’s least likely to reverse. In other words, one has to be very suspicious of momentum.

Which Indicators to Suspect and Doubt Most on Forex Charts

Some indicators are really deceptive on the forex charts. Especially indicators of momentum and patterns defining thin levels of support and resistance. Momentum can be extremely deceptive, and this is because sometimes it acts in a leading way and it works. But few days later it starts to lag the market, and the big losing trade comes along. Thin pivots of support and resistance are also deceptive. Wise CFD traders treat these levels as levels of test, and not as levels of conclusive support and resistance. The market can simply test these levels, breach them, and still go in either direction. Traders eager to get in the market at that time, end up losing every time the test fails. And there is no way of knowing the outcome of the test there and then, because momentum itself is deceptive. So one way of getting around this problem. Is to use pivots that are defined over wider price zones. Giving momentum more margin to reveal itself. Momentum can easily fool you over a margin of 10 pips, but not so easily over a margin of 200 pips, and over many hours. Wise CFD day traders read day trading forex live review reports and learn about indicators that don’t work. As well as indicators that only work over wider margins of safety, as mentioned above.

The ABCs of CFD Trading: Beginner Strategies for Earning Profits

online CFD Trading Strategies for Beginners

The best CFD trading strategies for beginners are the ones that allow the trader to make enough money. So as to feel content with the overall work and the benefits of the actual trading. And in such a way, that they won’t have to deviate from the strategy and chase different trades here and there. While there is nothing wrong with some strategy diversification, beginners may find it overwhelming and confusing. So sticking to one strategy at a time, and for a long time, works better than anything else. These best CFD trading strategies for beginners have to take advantage of the unique benefits that CFD contracts offer. In actual trading, it has been proven that swing trading strategies offer just that. Very good profitability, the ability to stay focused on one market, and plenty of trade setups. It does help to know the basics of CFDs through some trading CFD for dummies guide. And when it comes to the forex market. The swing trading principles, all part of the more general swing point analysis theory. Are all a trader needs to know. Swing traders utilizing other currency trading strategies are able to avoid many false signals, exactly because swing point analysis reveals these signals. There is also much less emotion involved because the trades last anything from an entire day to several days or even weeks. And this is so different to the intense, stressful day trading strategies. Which make many new traders lose time after time. Day trading is fine to try out, but only experienced swing traders have a good chance of success. Day traders who use dry systems, and focus only on the single day, miss too much information about the daily trend. The swing trader doesn’t miss that critical information, because they pay attention to the entire daily chart. So that yesterday’s trading session is still relevant today.

CFD Trading Strategies for Beginners Lacking Confidence

CFD trading strategies for beginners who lack confidence can be based on swing trading theory. But they can also include a simple hedging trade setup. And there is plenty of time to place, modify or cancel that hedging trade at any time. By looking to hedge sudden big losing trades, the beginner trader will feel more comfortable and not go around chasing losses, without having enough clues. They only need to know that the daily trend will not really change unless a valid swing point is breached, in a valid way. Swing trading theory deals with all these problems and ambiguities. And more often than not, even in the most confusing cases, the swing trader who also hedges losers, is able to tolerate a lot of risk. While simple, straightforward winning trades will always come back. The concept of trading online made easy is true here, as the hedging trader does deal with a difficult task. And they are able to be in the market, and still not be intimidated. Intimidation and extreme stress are huge obstacles to becoming a profitable trader. The wise beginner trader only needs to trade once or twice a week. And they can also prepare their hedging trades accordingly. If the trade size is large enough, the profits will make the entire trading task meaningful and worth the effort. There absolutely is no need to jump into day trading and high volatility when you are a beginner trader. And successful trading is not about committing full time, but rather about committing few hours a week, but with a deeper, sharper judgment on the markets. And ideally, doing these hours of analysis outside of the chosen market’s active hours. The-non active hours are much better for doing objective analysis.

USDCAD Currency Trading Strategies that Work

Online Currency Trading- The Effects of Brexit

The concepts around all currency trading strategies for trading USDCAD are based to some extend on crude oil. And to a lesser extend on the US dollar. Being a commodity currency pair, USDCAD offers some nice setups almost every week. These come with variable amount of risk. Sometimes the risk is too low. And sometimes the risk depends on how the trade is made. Traders who practice currency trading well, know many of these critical points. These currency trading strategies have to do with all kinds of analyses, from technical to geopolitics. Because both crude oil, and US dollar are impacted in a subtle way by various events around the world. The best forex trading strategy for USDCAD is the one taking into account these factors. But also the volatility of crude oil. Traders find great solid trends in USDCAD, not easily found in other pairs. This allows them to hold temporary losing trades with the confidence that they will turn around, into winners. It also allows for greater flexibility, and the margin for mistakes is greater. So every time crude oil makes a substantial move. Traders have to re-calculate the actual move based on how much the US dollar moved over the same period. By re-pricing crude oil after a move was made. They are able to see how much of the move was due to the US dollar. The rest of the move is attributed to supply and demand changes for crude oil itself. Crude oil also has its own volatility index, which helps get an idea what the market fears are. With crude oil, unlike the stock market, the fear is always that prices will go to $100 or higher. Therefore a rising crude oil volatility which also stays high, suggests fear of higher crude oil prices to come. This is only fear as expressed by the market. But wise CFD forex traders take it seriously, as it may hint an imminent trend change in crude oil. This volatility number is not straight forward, as it is not exactly correlated to higher or lower crude oil price. It express fear, but depending when crude oil price is, in absolute numbers, fear may be seen differently. For crude oil prices between all time lows, and around $60, the stock market is correlated to crude oil price. And the fear may focus on crude oil actually going lower, which will hinder the economy from growing. Traders have to take these factors into account, and treat each economic phase differently. By asking the question, what role does crude oil play at this very time? And this will allow them to figure out what the market’s fears are about crude oil price.

Implementing these Currency Trading Strategies

Implementing these currency trading strategies on USDCAD is easy, only after the specific role of crude oil and its volatility have been figured out. These as we mentioned are economic-phase specific. But when the trader has understood them well, they know that if crude oil makes a certain move, then USDCAD will simply move in the opposite direction. Analysis of the US dollar is not really necessary except if day trading is required. As the impact of crude oil is smoothed out and offset over periods of few days. This means that the US dollar can make crude oil and USDCAD move. And the move will be somewhat more profound in the currency pair. But only over a period of one to three days. Sooner or later the underlying trend of crude oil will prevail, and the commodity will go where it’s supposed to go. Regardless of the US dollar. Wise CFD traders see this as a forex trading business opportunity in many different ways. As several entirely different day trades can be made during these one to three days. For example one can trade the variable impact of the US dollar on crude oil, through CFDs on USDCAD. And not worry much about longer term direction on crude oil itself. But all the concepts are food for thought, for very good strategies, that actually make it possible to make serious money. All through these 3 markets. The US dollar, crude oil, and USDCAD. There is no need to trade 10 different markets.

How Can I Trade Forex Online through a Good Broker

To trade forex online like a wise trader, one needs to focus on the right principles and the most comfortable strategy. The strategy doesn’t have to be the best, but feeling comfortable is much more important. CFD brokers for example facilitate extremely liquid and reliable forex trading, which no other kind of brokers can facilitate. This factor alone helps remove a huge factor of risk and stress. Moreover, CFDs allow for wise hedging possibilities and smarter ways to trade any classic forex strategy. By doing these simple steps, the trader can trade forex online and have a small but critical edge, from day one! There’s no single best forex trading strategy, many strategies can be good and profitable. And then there is the temptation of day trading forex live, which is the ultimate test for all brokers and traders. As provided liquidity itself is put to the test. Needless to mention that CFD brokers win this competition hands down, over their non CFD counterparts. Non CFD forex traders are faced with long delays in getting a proper filling price. Sometimes they get such bad fills on their trades that profitable trades close 50% below their potential maximum profit. That’s the way it is in the real world of day trading live, volatility takes no prisoners! And this makes it almost impossible to implement even proven strategies in a non CFD environment, because day trading is so much different than other strategies. Spot forex brokers are good for large size traders, trading slowly and at over $100 per pip. For any other case, and for less than $100 per pip, CFD brokers are the way to go. As they allow you to really capture every single pip of your intended trade, and turn it into real profit. So new traders need to be careful how they choose to trade the forex market, spot forex brokers cannot handle extreme market conditions. And these conditions are occurring every day when you day trade.

Trade Forex Online and Never Look back

Critics of forex trading argue that currencies are hard to predict, harder than stocks anyway. This is nonsense. Commodity currencies are actually easier to predict than many other markets. These alone invalidate their argument and can allow a trader to make millions. Moreover, anyone who makes blanket statements about either stocks, or forex, or any other market, probably doesn’t understand them in great depth. Traders can trade forex online and never look back, the forex market is highly versatile and full of different opportunities. There is opportunity because risk creates it. It’s a fact with irrefutable evidence and economics 101. Traders can see how other traders think, how veteran traders think and act, all through day trading forex live review reports. Where concepts, strategies and ideas are put to the test, and are evaluated objectively. Myths are busted and facts are further scrutinized.

Forex Strategies Revealed through the Charts

Forex strategies that are at least to some extend profitable and useful to all traders. Can be revealed through the charts. These forex strategies could be anything from major signals on the daily chart, to small day to day trades. There is no need to stick to one pair, one specific market. Not even knowing all these foreign exchange currency symbols at a deep fundamental level. But simply by looking at their daily charts, traders can figure out correlation patterns. This is the first step towards spotting signals one one pair, that may trigger movements in more than one pairs. Currency trading strategies can be of all kinds. Including tasks where the objective is to identify 100 pip market movements, and get in early. The wise trader can simply look at clear candlestick charts, and pay attention to various details. Details such as the last day’s high and low, today’s LSS pivot numbers. And how the market behaved against these levels. Major signals on the other hand are harder to spot, because they tend to be in the making for several days. The market may not move at all during these days. But since failure to move in the previous direction goes on for so many day, it calls for caution. Remember that if it takes too long to move in the expected, obvious direction suggested by previous momentum. Than the probability may favor a reversal on the daily chart. And other traders do study this time dimension a lot, by counting days during each delay.

What to Watch out for

Other trader’s forex strategies will of course be conflicting, as not everyone trades alike. Not even institutional traders trade all alike. But the signs of their intentions are often revealed by their actions. We know that they watch both price and time. This is especially important when good news hits the market, but the market fails to rally. And days go by, and the market hardly rallies at all. This hesitation of the market to rally on news perceived as good, is an indication that the market wants to go down. And the minor triggering action will make that happen, such as a breach of some support level. Or the failed test of a resistance level. The currency trading strategies of leading traders, those who will initiate the trend, can be seen this way. Especially those of traders who are after making 100s of pis in a single trade, not just 20 or 50 pips.

Forex Strategies Revealed and Improved

To make improvements and changes to other people’s forex trading strategies is not difficult. Just as long as the spotting trader identified the entry signs and signals in depth. The spotting trader may want to get out at an earlier or later stage during a breakout, and not at the same stage as those other traders. Once the market establishes a solid trend, there are many ways to handle that new trend. In fact, the spotting trader may no longer need to watch out for new signals, for many days to come. It’s only during major turnings points on the daily chart that they have to study the charts deeper. And most trends last for many days. So it’s only after the trend has matured enough, that they need to be on the lookout. Smaller day to day trades, can still be revealed and improved. But the trader can afford to trade these all on their own judgment, and even make mistakes. Just as long as the daily trend is well defined and known, there will be no big negative surprises.

Using a Beginners CFD Trading Guide

A good CFD trading guide provides unique insights into the benefits of CFDs. Benefits that most generic information sources fail to mention and analyze. A good CFD trading guide is written by someone who actually has the necessity to employ CFDs in their own trading. And not by some generic writer. Trading online made easy is what many of us want. And it’s not an unrealistic expectation to have, just as long as the hard work has been done in advance. And in order to navigate through many trading mistakes and do that hard work, one has to explore CFDs in many ways. Because CFD contracts can facilitate advanced directional trades, and hedging trades. Even to this day, many beginner traders are not aware of these possibilities due to a lack of original thinking. But profitable online CFD trading is not fiction, it’s a fact.

A CFD Trading Guide Goes a Long Way

A useful CFD trading guide will teach the trader on how to think originally. And how to break free from the bonds of so called rigorous, disciplined trading. Because discipline trading principles and ideas tend to fail actual trading tests. If someone is disciplined enough, so as to be afraid of breaking rules, they will never explore anything new. And profitable trading requires breaking established rules. Online CFD trading can be made extremely useful and part of any classic strategy. Disciplined traders cannot go this far, because the very definition of discipline implies that one trades on the surface. Treating each day as a repeat of history, where nothing unique is expected to happen. Therefore one has to look beyond classic disciplined trading, much deeper, into the uniqueness of the markets. And CFD guides can trigger the trader’s curiosity so as to do just that.

Becoming a Bold Trader

Becoming a bold and curious trader requires some sacrifices, some of which include avoiding being around negative thinkers. But also avoiding laid back, lazy people. While all people are good and useful, many of them will try to discourage you from exploring financial trading. Or in the case of the lazy ones, they might try to talk you into so called effortless ways to trade. Such as forex robots and other nonsensical solutions, which have been proven to fail time after time. The wise CFD trader makes the transition using their own judgement. Going from trading CFD for dummies to totally new trading concepts. Where classic trading rules can be bent or broken. Because CFDs help take care of most of the risk. For example, all hedging traders break the rule of Never Add to a Losing Trade. They add to losing trades all the time, but risk is limited by some hedging trade, set up through a contingent CFD order. If the market moves by a certain margin, in a given direction, this hedging trade will offset the loss of the losing trade. And if the market goes in the desired direction, the hedging trade will not be triggered at all.

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