Forex Trading for Beginner

Monday, February 20th 2012.

Forex Trading for BeginnerForex Trading Lessons

There are several lessons that should be learnt to perform forex trading for beginner. One of the most important lessons is currency analysis, which is useful to predict both currency fluctuations and market movement. There are two methods in forex trading for beginner to do such currency analysis.

They are technical and fundamental analysis. The technical analysis in forex trading for beginner is helpful to measure the volatility of price by identifying any trend. This is a way to detect trading signals and involves the currency pairs’ price.

On the other hand, the fundamental analysis in forex trading for beginner pays attention on the external factors or government factors such as current political situation and unemployment rate of the country offering the currency that may give impact to the currency value.

Forex Trading for Beginner

Day trading strategy is also important and ideal lesson in forex trading for beginner. This strategy will not allow a beginner to hold any positions of trading overnight.

Instead, it suggests new investors to buy the positions during the day to be able to liquidate all of them that are held by the same trading day’s end. The philosophy behind this lesson forex trading for beginner is the longer the investor holds the position the risk of losing the trade is higher.

In other words, by doing day trading, during a day a beginner will have chance to make many small trades without having to take higher risk by holding his or her positions too long.

The reason is that the price of currency is fluctuating throughout the day and it is profitable to take advantage of the fluctuations of small price is both more profitable and easy to do as a part of forex trading for beginner.

Forex Trading for Beginner

Support and resistance level is the next important lesson in forex trading for beginner. Understanding the past currency’s price movement is emphasized in this lesson to identify the resistance and support level of specific currency.

The other name of this strategy is range trading and it is very important to succeed forex trading for beginner.

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