Trading Forex Profitably
Trading ForexÂ profitably is a dream of every trader.most of the traders find forex very discouraging because they donâ€™tÂ take theirÂ time to knowÂ which is the key prayer in the market. Traders find trading very difficult when they enter trade and donâ€™t make any money or they lose what they have invested.
Areas to watch when Trading Forex
This is the key areas which every trader should know and be able to identify them each time they make their trades
- Supports and resistances.
- Reversal areas
- Opening and closing of candles.
- Time the market is breading inn
- Time frames
The entire above Trading Forexare related to each other in one way or the other. If a trader understands how to work with all this he/she will be profitable trader. By knowing how to apply this trader will enjoy the Trading Forex
Supports and Resistances in Trading Forex
Supports and resistance: Every trader ask where are the supports and the resistance. It is not hard to get them correctly Longer time frame will always give trader the absolute supports and resistances. Closing and opening of monthly candle itâ€™s high and its law will give the R&S. Since this is monthly candle it have the strongest Support and resistance. Forex Trading is based in this area of S&R
When you move Form monthly downwards the weaker the Resistance and the support are. Every time frame has its own resistance and its supports. Remember that you have to relate them every time you are trading.
Reversal areas Depends on Candle Opening and closing in Trading Forex
Opening and closing or he candle dictates where the trade will go next especially on a range time frame. If a month closes down than the previous month then it is most likely the trading month will be down. This will be a reversal area which Forex trader will need to watch. Closing Of candles from four hours upwards will always move the market either up or down depending either up-close or down close, market will reverse to that direction.
Time as market breads inn
Trading Forex time is the prime factor when to trade and when to come out of the market .Many traders jump to the market when big number of traders is coming out you should join other when they are trading .when many traders are in the market the market moves accordingly. Volumes move the market no matter what, as a trader you have to join the masses and volumes for you to trade profitably. When American market opens the volatility will increase this is a very large market which have bigger volume added to the market. American market open at around 3:30PM our Kenyan time and closes at mid night. Then Asian market open from mid night and close at 8:30AM. Europe opens at 8:30am up to 3:30pm.What you have to know when market open or closes it always bread inn to the other, when bread occurs volatility increases and this is a good chance for aTrading Forex
Conclusions in Trading Forex
After reading this Article am very sure your trading will have to change from an profitable trading to profitable trading. Or consider getting our refresher course for perfect Trading Forex