The Easy Way to Profitable Forex Business (Full Guide)
Forex is one of the most popular investment options today. The number of interest in forex in addition because it can generate profits is also caused by the development of internet technology among the public. Indonesia itself is counted as a developing country is also not left behind with the advancement of internet technology. Forex enthusiasts in Indonesia are also quite high.
The number of forex enthusiasts make the forex market movement is also very tight. You will meet other traders who also expect profit from the trading done. Although your opponent is the value of a traded currency, but you also need to pay attention to traders who participate in fighting for trading. Not to mention if you are among traders newbie in the world of forex. You need a way or strategy that can help your trading.
In order for your trading as a newcomer to generate profits, here are some easy and simple ways that you can use.
Reduce Number of Open Positions
When a trader does an Open Position then he will be charged “fee” in the so-called trade spread. Spread is the difference between bid (selling price) and ask (buy value) known as quote sell and quote buy. This spread will be the income earned by the broker, where each sell then 2 points to tens of points will be charged. Brokers do not take commissions directly. However this spread will cut the profit you get. If you often do Open or Close Position then you will often be exposed to this fee or spread.
Theoretically, the wider the Stop Loss then the higher your chances of getting profit. The narrower the Stop Loss you are using then your chances of moving before following the identifiable major trend are narrower. In short, too few Stop Loss will be more easily touched. This is what makes traders actually think Stop Loss will increase the possibility of loss. It is advisable for the trader to give enough space in the movement to stop the Stop Loss is not easily touched.
Set Take Profit
Profit is the main thing expected by traders. Therefore, before doing an open position will be better if trading determines the take profit to be obtained. Broadly speaking traders should pay attention to the right trading management. Do not let traders open positions only with capital approximately so that your take profit will widen. As said before if the profit you later get should be cut with the spread. This means you already bear the risk of loss by opening a single position. So, make sure you are not perfunctory in doing Open Position.
Time frame 4H or more
One of the reasons why this is considered a simple way in the forex business is the many traders’ opinions that the 4H time frame has the lowest false signal .Time frame is also in accordance with traders who hope to get 100 pips more profit because it is easier to identify the major trend in progress.
Profitable Indicators in Forex Businesses
One of the techniques used in seeing the movement in forex trading is an indicator. In forex, many indicators can be used in a simple way so that beginner traders can also use it.Although sometimes still need help from fundamental analysis , but the role of this indicator is very important.
Various indicators also vary as Moving Average, MACD, Stochastic and many others. One of the various indicators, Moving Average, is the most simple indicator and is available on all trading platforms. The MA indicator is a favorite indicator of the scalper trader. This indicator placement and its use is very easy for beginners. Traders simply define the time frames for trading, put a combination of multiple MAs, test their reliability and operate.
Moving Average used as a reference market trend became a popular indicator in forex technical analysis. Trading follow the trend is one strategy that uses the MA indicator as well as the basis of a forex analysis. Even large-scale trades like wall street still use Moving Average.
There are many reasons why Moving Average is chosen to analyze trading trend.This is because it is easy to use and easy to find. MA is very famous in Metatrader 4, even already provided by default so users do not have to bother to download the MA indicator. Another advantage is the easy-to-use MA to analyze currency trends. Especially if you know how to set an accurate MA indicator then you will know the trend of forex market.
Moving Average setting
Learning to analyze using Moving Average can be said to be easy and practical.Nevertheless we still have to be observant. Moving Average provides convenience to the trader in analyzing and obtaining a consistent profit. There are 2 ways that can be used to perform technical analysis using the Moving Average indicator.
TREND ANALYSIS ON LARGE TIME FRAME USING SIMPLE MA 200
Simple Moving Average 200 can be used to know the condition of the market is trending or being sideways. But unfortunately MA 200 is only good if used to analyze big trends at all time frame. If what you face is a small time frame then just following 1 MA indicator will not be enough. Therefore if you use MA better combine the timeframe large and small.
TREND ANALYSIS USING 2 SIMPLE MOVING AVERAGE
This method is the most widely used by professional traders. In forex 2 Simple Moving Average can be used to analyze currency trends quickly. How to analyze it is also quite easy, just by waiting 2 Moving Average cross each other. Moving Average setting that is widely used in the Simple Moving Average period 100 and 50. Setting steps are as follows:
- Add Moving Average on the traded chart.
- Choose Simple MA type in period 100.
- You may choose any purple or color color from 2 MA to have different colors.
- Repeat the first step again.
- Choose Simple MA type with period 50 with the color you want the origin is different from other MA.
- If this step is done then the analysis using 2 MA will cross each other to form a trend in the pair EUR / USD.
- After this setting is done it will appear Trend Down or Trend Sell for EUR / USD currency. We just follow it, if the price starts to rise then please open a position sell or close in accordance with your own wishes.