Easy Forex Trading Secrets.
Playing Forex is a currency trading that involves currencies of various countries. The currency of the country that entered the ranks of “merchandise” in the forex market is even followed by currencies of superpowers such as the US dollar, British pound and the European Union with EURO. This currency certainly has a very high exchange rate when compared with the rupiah.
In order for you to keep trading easy but still profitable, here are some ways that you can apply.
How to Play Profitable Forex
# 1 Use only a few indicators
Indicators have an important role in trading by traders. When a novice trader enters the forex market and knows the usefulness of each indicator, he can be interested in using all the indicators and tools available. The goal is none other than to gain profit from each of these indicators. Finally, traders will use too many tools . This trader does not know if using too many indicators will even endanger your trading process. We recommend that you use the indicators that you really need, because each has its own role. Use the indicators that you really need.
# 2 Time Frame H1
Chart trading is presented in various time frames. Starting from time frime M1 to Mountly. You can use any time frame that suits your needs. However, if you are a trader who wants to apply simple and profitable trading, it is better not to use the time frame below H1 (1 hour). If you use a low time frame, it is feared you will be stuck with a less accurate condition and the emergence of a lot of noise that trigger false. Especially if you are bertrader with major trends, better if done at high time frame.
# 3 Obey Entry Signals
Trading is done with Sell when the price is high and Buy when the price is low.This does sound easy. But in fact this is not easy in practice. Sometimes a person uses an emotion that appears to open a position. As a result you will experience loss due to enter without a logical reason. You should still comply with the entry signal from trading regardless of conditions. This will prevent you from victims of pro players who are in the forex market .
Close positioning strategy can not be done carelessly. It would be better if you apply a position position management strategy for positioning your trading successfully. Any amount of your profits, if the profit is not greater than the loss suffered, then the sign you still lose. One of the risk management rewards that can be set is risk / reward more than 1: 1. Take advantage of the use of stop loss and take profit available.
# 5 Create a Trading Journal
In addition to paying attention to risk management to gain profit, you should not ignore the loss you experience. Loss that you experience will be a learning for you in the future so as not to experience the same thing and can play forex in a better way. Therefore, make sure you create a useful trading journal to analyze all the things that happen in your trading process.
Play Forex: Long Term Trading Analogy and Short Term
Many things a person does to understand trading, one of which is to make a trading analogy. Generally this trading analogy adapts to certain activities such as business, surfing, planting, animal way of life and others. The goal is none other than to understand trading with more simple and at the same time can be used as a guide and philosophy for traders in transactions. Many trading analogy that emerged, one of which is the analogy for long-term and short-term trading.
# Long Term Trading Analyze – Crocodile Behavior
Crocodile behavior can be used as a model by traders in behaving in trading. In trading, traders can act as predators who hunt for prey. As a predator, trading can mimic the Crocodile’s way of hunting prey. Traders must be disciplined, patient and able to adjust to market conditions in order to gain profit and avoid risk.Crocodiles have a patient predatory nature. Crocodiles are able to remain silent for days to wait for their large prey. Crocodile does not want to waste his energy just to hunt for easy snacks around him. Eating small fish around will not be able to meet the hunting energy.
The analogy in the trading is with the rare entry expected traders get a greater energy content to survive until the next entry. It also avoids the risk of poor quality entry. Of course in trading we can experience loss and not always profitable, depending on the risk management that we apply. However, this Crocodile method is obviously waiting and monitoring patiently until there is the right prey to be pounced. This is in accordance with long-term trading with low frequency to reduce risk. Traders need only discipline and patience while applying clear methods and plans.
# Short Term Trading Analogy – Lion Behavior
There has never been a fact that states a prey can escape after entering the mouth of a Crocodile or a Good Alligator releases its prey. Compare with a Lion who often fails when trying to chase and catch a Deer. The lion has exerted much energy and unfortunately ended in failure. The analogy is short-term trading with high frequency can make a person get a high risk. Not to mention the traders who will run out of time used to observe the chart. Open position quantity will not guarantee the quality of the profit you earn.
Setting Indicators and Advantages
Indicator is indeed a measure of price movement in the forex market. An indicator that is a tool or tool requires the best settings so that it can produce a higher accuracy than the wrong settings or not appropriate. When using this indicator then traders can analyze the movement of forex market and produce good trading quality.
One of the functions of the indicator is to provide information on market conditions that can determine what appropriate strategy is used under those conditions. Another function is to provide signal entry and exit so that it can exit and enter the market properly. Looking at both of these functions, the best indicator is an indicator that can produce accurate signal entry and exit. Of the many indicators that meet the above functions, one of the recommended indicators is the Stochastic Oscillator indicator.
The Oscillator type indicators that provide the most accurate signal entry and exit are Money Flow Index and William Percent Range. The most accurate indicator parameters of the Oscillator consist of parameters K period = 9, D period = 3, Slowing = 5, Price Field = Close / close, MA method = simple. The entry signals are occurring when intersecting at the saturation zone.
Momentum that causes short-term trend direction change usually occurs when the two curve lines intersect (crossing). However, you can still increase the probability of these signals in 2 ways, namely:
# 1 Looks crossing curve lines at extreme levels
You do not have to respond to the emerging signal, but take the signal that has the strongest probability. As the Stochastic Oscillator indicator is limited by the 0 – 100 level, usually overbought condition occurs if the% K curve has exceeded the 80 level and the oversold state occurs if the% K curve line has fallen below the 20 level.
# 2 Customize Entries With Higher Time Frame Time
When a strong trending occurs (eg uptrend) then at a lower time frame the Oscillator indicator will show an overbought state. This could be a wrong signal and if responded with a sell entry it will be fatal because the uptrend is being strong. If the uptrend is still strong, it is better to use this indicator at a lower time frame indicating an oversold state as a buy signal. In this case the oscillator indicator shows the right momentum for the entry. That’s tips about playing forex that you can learn.