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What trading strategies to use the novice trader
In the environment of Forex traders today it is widely believed that trade in the foreign exchange market is a kind of lottery. If the trader was lucky, money, if luck turned his back – lost money. The reality of Forex trading, as usual, far from the colorful illusions beginners.
As with any financial instrument on the Forex market there are certain laws, calculating cyclicity which can provide a stable income. For professional traders this concept is called "trading strategy". Every experienced trader has their favorite Forex trading strategies, the choice of which is caused by various reasons. However, for beginners, trading strategy cause uncontrollable fits of trader panic, which explains the apparent high complexity of development.
There are three the most popular forex trading strategies based on technical analysis of the currency market, study charts prices historical and forecast dynamics for the future, based on recurring patterns.
The first is a common trading strategy is candlestick based on the behavior of currency prices in the selected time interval. Using candlestick traders analyze charts exchange currency pairs and make a decision about opening a position.
Another very popular strategy is the analysis of the currency market based on the theory of Fibonacci, when each previous number is 0.618 of the next, and each successive number is 1.618 times greater than the previous. When the price pairs on the graph approaches the line, built by the laws of the theory Fibonacci traders believe that the current trend will change soon.
The last Forex trading strategy is based on Elliott wave theory, according to which fluctuations in the foreign exchange market is vulnerable to amplitudes with fixed patterns. Regardless of the direction of the trend, the main trend consists of five main and three corrective waves. Very often experienced traders use Elliott wave in combination with other trading strategies.
These three campaigns is the best Forex trading strategies for beginners.
Finally, we recall that the objective to understand and learn Forex trading strategies for beginners is very important. As well as the realization of what foreign exchange market operates according to certain laws, the knowledge of which contributes to the success when trading in Forex.
|Category: Forex | Added by: (29.10.2017)