Gaps are areas on a chart where the price of the currency (or other financial instrument) shows a sharp move up or down, accompanied by little or no transaction volume. As a result, the chart shows a “gap” in the normal structure of currency prices. The enterprising forex trader may interpret and exploit these vulnerabilities to their advantage. This article will help you understand how they form and how they can be used to conclude profitable trades in the forex and stock markets. Playing gaps is such interesting forex strategy that it should appeal to both investors preferring technical analysis, as well as those that make their decisions based on fundamental analysis. Continue reading Playing gaps in the currencies prices
Technical Analysis at various time intervals is a simple forex trading strategy consisting of an analysis of the selected currency pairs in different periods shown in the chart. The advantage of this strategy is the fact that when considering the behavior of a given currency at ever shorter intervals, the investor obtains almost instantaneous picture of the movements made by a certain currency pair, giving him the opportunity to make decisions based on sound analysis and information, when buying or selling a currency pair. Continue reading Technical analysis at various time intervals
In forex trading tutorial it is not often that you can read about technical analysis. This is caused by the fact that the fundamental analysis is simply closer to my heart and wallet. But now it is time to change that. I came across a very interesting description of certain investment strategies based on technical analysis and I would like to share it. On many occasions it has proved to be very effective idea for investment. Continue reading Morning weakness
Guerrilla investment strategy
“Guerrilla trading”, as the colorful name suggests, refers to investment strategy, which is used by clever investors who enter and leave the forex market in short periods of time. This tactic of investing aims to generate quick profits and minimize the risk to zero. A characteristic feature of guerrilla investing is trading for very short periods of time, shorter even than investors who use the scalping strategy. As a result, investors who use a day trading strategy, look like long-term investors in comparison. Only some automatic trading systems have a shorter investment periods than a trader employing a guerrilla strategy. Continue reading Introduction to the guerrilla trading investment strategy
Tracking investment performance
Tracking results of your investments is very important in the context of development and improvement your ability to invest. If you do not know where you were standing when you began, you can’t know where you’re going. When maintaining detailed records about your investments, you can always go back and see what did you do well and what you did wrong. Then you can draw conclusions and learn from your mistakes. Every professional trader in the forex achieved his success only by learning from their mistakes. The same is happening in any other profession. Keeping accurate records of the investments is very important, because along with the well-built investment plan, those are the two most powerful tools to combat committing emotional mistakes when investing. Continue reading Tracking results, trading in a demo and live accounts
One of the most important elements of the long-term success in the forex is skillful management of capital and prudent investments – while maintaining an appropriate level of risk. Both of these elements go hand in hand, because in order to understand and skillfully use the strategies you need to bear a particular risk to be able to properly manage your money. Continue reading Money and risk management in the forex market
Trading on the forex market is a business
If you really want to succeed in forex trading, you have to approach it as a business. Most investors don’t treat Forex seriously, and that is what makes them lose most of their money. Trading on the forex market is a business, and you’re the chief accountant. You need to keep control of all your business decisions and must act according to strictly defined investment plan. Such plan should include tips and types of behavior in the event of a number of different scenarios. It is very important since any business, including investment, can only succeed if you do not act on emotion. You need to be completely resistant and you can not let greed or fear to influence your decisions in the forex. If you act on emotions, you’ll quickly lose your money. Continue reading Creating an investment plan to the chosen forex strategy
Investing with the trend
Investing in accordance with the direction of the dominant trend is one of the best ways to make money in the forex. Practically, you can always find at least one forex currency pair that has a distinct main trend and that is why many investors are holding up investment strategies with the trend. Such strategies have a much higher probability of success than investing in any other environment. Of course, you always need to keep in mind the fact that no currency is not always maintaining in the trend, and so you should have a protective strategy in case your chosen currency pair enters a period of consolidation for a long time. Regardless of everything, investing with the trend is one of the most positive, accurate, safe and least stressful way of forex investment. The best way to learn how to invest with the trend is to use simple candlestick charts, with marked moments in which the violation occurred outside of a trend or support and resistance levels for this trend. Continue reading Three basic strategies that every forex investor should know
What forex investment strategy will be right for you?
Selecting a strategy of investing in forex trading can be a very subjective matter. This follows simply from the fact that there is no single correct way to invest on the currency market. I hope that those few questions and answers will help you decide which forex investment strategy might be suitable for you. Continue reading How to choose the right investment strategy?
What is forex trading strategy?
The forex investment strategy is your personal approach to the FX market. The right approach is not a set of strict rules, or a computer program, rather it should contain information about when to buy, when to close your position (sell the currency), cover issues of capital management and appropriate psychological approach to investment. Effective strategy of forex investing should give you a kind of method that gives you a foothold in the market. Continue reading What is forex trading strategy and how it differs from the investment system?