There are various strong reasons to learn forex trading and to be well prepared in the beginner forex currency trading. You have to be aware of certain basic facts of the forex market such as the volatility in the currency price movement, the leverage and that you can trade round the clock.
In total harmony and a clear understanding with the best forex broker in Nigeria, you have to develop a good forex trading strategy in the beginner forex currency trading stages. There are two good basic strategies. They are fundamental concepts and technical analysis.
You have to pay close attention to fundamental concepts and technical analysis when you are trying to adopt a good trading forex strategy. The fundamental as well as the technical analysis are vital in the implementation of an effective trading forex strategy.
Beginner Forex Fundamental Analysis
Fundamental Analysis – This analysis helps you to gain a better understanding of long term currency price trends in the forex market. The Value of a country’s currency is affected by Many factors. The major factors taken into measure in the basic analysis are the total economic, social, and political conditions of a particular country. It would be great if you were tuned to the influence of factors like news from the banks, non-farm payroll reports, state events, consumer price index, payroll imports, and exports. You have to understand how these factors affect any particular currency’s price in the beginner forex market.
Beginner Forex Technical Analysis
Technical analysis is used through diagrams and charts that follow past data summary on both price and volumes of currencies. A common way adopted is the application of an analysis of currency trading known as the Fibonacci Retracement. Fibonacci was a twelfth-century mathematician from Italy. He made startling contributions towards the forex trading strategies in use today through his retracements and arcs. The significant mathematical lines are used today by experts to predict the changes in currency trends. This is done when the market prices approach the lines outlined by fans, arcs and retracements.
Once you begin practicing a particular tactic in the beginner forex days and find a special method working for you, spending time and developing it to finer details is advisable. Whatever strategy you may choose, it is important to do some hard work and prepare yourself to succeed. A good beginner forex trading strategy will involve identifying the currency pairs to trade in, the indicators to use for the entry and exit points and a good sense of money management.
How to doing well in the forex trading
The key to doing well in the forex trading is to take the least amount of risk in ratio to the expected gain. You have to work on restricting the risk while you are making the market moves. A good method of restricting risk is following the simple moving average model that has twelve periods of fifteen minutes each. When the price of a currency falls below the twelve period simple moving average, this is an indicator that you have to stop and reverse (SAR). When the price of a currency rises above the twelve period simple moving average, it is an indicator to start buying. This will allow for a short position to be set up in addition to a long position and both have to be liquidated with respective buy and sell market orders. This is a simple example of how technical analysis can be used as a good method in your forex strategy. A great way to improve your profitability in forex trading is to sign up for a forex rebate program.