Financial markets contribute to the proper functioning of many areas of the economy. Shares of companies in the energy sector, automotive industry, banking industry, real estate, retail industry and others are listed on the stock exchange. But how does the Forex market relate to this?
Most of these companies carry out daily foreign exchange transactions for various purposes: to buy equipment and raw materials, to invest in foreign projects, to receive income from foreign sales, etc.
For this reason, exchange rates fluctuate daily. Anyone can make money with it. All you have to do is understand Forex Trading .
What is Forex trading?
To answer the question “What is Forex Trading?” ”, Let’s understand what Forex is. Forex includes foreign exchange trading. In English, the abbreviation Forex means Foreign exchange or “foreign currency”.
To trade Forex legally, it is mandatory to open an account with an accredited broker. The broker acts as an intermediary between the financial markets and ordinary citizens. At the same time, he tries to do everything to ensure that his Forex trading (FX trading) conditions are as satisfactory as possible to the clients.
After opening a trading account, the question arises: how to trade Forex in 2021. In other words, which trading strategy to choose in the near future.
Trading is about understanding when to buy and when to sell. Therefore, any novice trader should choose the most attractive currency pairs (we often start with the major pairs: EURUSD, GBPUSD, USDCHF, USDCAD, USDJPY, AUDUSD) and decide which signals to use to open and close positions.
Understand trading in minutes a day
Trading signals should be researched and verified. This is the answer to the question “how to learn trading?” “
Fortunately, you don’t need the full tutorial to learn trading – you just need to constantly develop yourself and move towards the goal. To begin with, it is important to define the basic language of trading, such as a stock , bond, ETF, support level, resistance level, Forex correlation, Bid, Ask, trend, a flat, etc.
Then you need to highlight and analyze the types of analysis: chart, technical, fundamental, Price Action, VSA and others.
Then, in each type of analysis, consider 5-10 of the most popular patterns (or patterns), highlight the ones that interest you the most, and start practicing them.
Mastering Day Trading
This is a narrower question, because trading and investing can last for different time periods: from milliseconds to several years.
To understand how intraday trading works, let’s define day trading. It is trading in a trading day. That is to say from 00:00 to 23:59.
How to trade intraday Forex? It is necessary to establish a trading plan assuming that a position can be opened from a few minutes to several hours. It is convenient to use Timeframe M5, M15, M30 and sometimes H1.
The approach is similar: try new analytical methods every day and improve your skills. Over time, this will give results.