Easy and Profitable Forex Trading Tips

Easy and Profitable Forex Trading

Forex trading made easy - Forex trading is a foreign exchange business. This business itself has been started from many years ago that in outline, its history from divided into 4 stages, namely:

1. The first stage was in the golden period, between the years 1980-1914
2. The second phase of World War 1 period 1919-1939
3. The third stage of the Bretton woods period, 1946-1971
4. The fourth stage is the period of floating exchange rates, between the years 1971-present

The forex market can be classified into the period of a fixed exchange rate and a floating exchange rate period. Along with the development of this business era is also experiencing a variety of progress is increasingly amazing and transformed into the largest market in the world when measured by the value of total transactions.

With such a large transaction every day to reach vlume per day $ 1.4 trillion per day certainly offers a huge advantage as well. This opens up one of the exciting opportunities to earn an income online.

Many people who have made this forex as the main source of income. And that's only natural because forex is a very promising business, provided that the heart is managed with a lot of learning and tenag, it will menghasilakn profit is very abundant

In forex trading itself there are various kinds of systems and strategies that can be used, the easiest and safest trading system is the trading follow trend system. Follow means to follow so with this trading system traders only need to follow the movement of the market that is tranding.

The trend followers will look for trading opportunities from the breakout when trading the market into a certain direction. Characteristic of opening order in the form of pending stop.

Some indicators are often used by well-known traders

Moving average

Moving averages are indicators that serve to calculate the movement of prices within a certain time range

RSI

Relative streng index is an indicator used to calculate the comparison between the attractiveness of the increase and decrease in price, the value ranges from 0-100. With RSI you can find out whether a price is overbought or oversold.

MACD

This indicator serves to show the current trend and also can signal buy or sell. In the MACD there are two lines you will encounter, namely the line signal and the MACD line.

Candlestick

In addition to the above indicators there is also a candlestick that can help you in getting profits in trading.

Pinbar pattern

The pinbar pattern is one of the most profitable candlestick patterns that often appear on the chart. The shape of this pattern is its long shadow is always longer than the body and the tip of the shadow of its opponent (nose). The formation of pinbar candlestick pattern indicates trend forwarding.

Pattern inside bar

If the trend has reached its highest or lowest point usually this candlestick pattern most often appears and very profitable for its users. The pattern of the inside bar indicates the formation of a new trend because there is consolidation between sellers and buyers pulling each other pull

For those who are usually beginners they often make mistakes such as:

Forgot to install stoploss

The problem of stop loss is a problem most often forgotten by beginners. And if you do not use a stop loss will be at risk of losing big. For that try every time the transaction wear stoploss

Trading with uncontrolled emotions

For beginners, usually their trading methods only follow emotions especially if they just experience loss. For that the right way to deal with it is to stop trading for a moment to calm down.

Beginner traders do not understand the market conditions that occur

Because still beginners usually they lack knowledge and less understand the market conditions that occur. How to overcome it by continuing to learn and never give up.

Management Trading

In addition to indicators and candlesticks in trading is very important to pay attention to various management such as:

1. Time management: for good time management in forex trading try not to too often make transactions, especially for those of you who are beginners and not too understand the state of the market once a day is enough.
2. Financial management in trading: financial management is one of the keys to success in trading here you determine how much money you will risk.
3. Profit management benefits with 1: 2 of the money you risk is good.
4. Loss Management: is a setting about money that you are willing to relieve when loss occurs for example you make the rules a day will give up 20%, so if you experience losses reaching 20% ​​you have to stop your trading activities on that day.

Here is an example of an easy and profitable trading system:

The scalping system is close short-term trading in less than a few minutes by taking a pips profit of just a few pips with a large lot. Time frames commonly used in this technique are 1H and 5M.

1H functions to determine the major trend that is happening while 5M is used as a determinant of execution.

In addition to scalping you can also use day trading system .. day trading is an open trading system and close positions within the same day, this system is also very suitable for beginners.