Simple forex trading

Beginner Questions
1

Hi traders,

My name is Koji (not my actual name) I am posting this just to help the starters in trading (forex).

The first point in trading: Don’t listen to everyone, I know you are thinking, but how should I learn?

I think from personal experience, you can listen to people, but you need to find the right people to help you in trading forex. I am lucky due to the fact one of my friends is an investment advisor so he has helped me a lot in trading, but if you can’t find a “mentor” then don’t worry as you don’t need a mentor to be successful, but it helps having someone to depend on if you are stuck with a part of trading.

This next part is just a few basics of trading and guys remember trading is not brain surgery, but it does take a lot of time, focus and determination and a brain to hopefully become successful.

The first and one of the most important points= in trading is the NEWS.

The news is a huge part in my mind for trading forex and within the news you have a lot to decipher.

The bad point about the news is you can’t just listen to it and guess what might happen as when the news reports different topics that can seriously change the structure in the economy or things to help grow the country like if gold is affected, then you could keep your eyes on Australia/AUD as that is a big part of Australia. The facts of the news can lead to huge changes, this is a little list of things that can affect an economy.

FFR

Quantitative easing methods

Interest rates (Housing market included)

Employment rate/general labor stats

Import/exports

Country trade relations

monetary policy reports

The other factors to this is charts and indicators, but that is another thread, but just remember to study, simplify it and if you need any information please feel free to message me with regard to anything trading.

2

hii guys …
thanks for the information it was really helpful…

3

That is debatable and depends on the trader. Sure, news can have a great impact and fundamental factors do spike the charts. It is important to understand what it going on. In the end it depends on the trader how much value the news will play in their trading approach. I can agree that it is important, but other things rank much higher on my list. Everyone needs to decide for themselves.

4

news is a one of the major market movers but not everytime, there are many factors that effect the market and we should consider it all to make any predictions.

5

I can totally agree with that as it depends on what kind of trader you are, but in my opinion it is very important, but I can see that a lot could say you should not depend on it as a lot of the times the news does not correlate with what is going on in the chart. I only choose the news as very important because I have it as a base for when I am trading so if I am focusing on a certain currency and I want a base so I look at the news to try find future trends that click and other ways then I go with my charts and indicators etc.

6

[QUOTE=“TheLastBear;700295”] That is debatable and depends on the trader. Sure, news can have a great impact and fundamental factors do spike the charts. It is important to understand what it going on. In the end it depends on the trader how much value the news will play in their trading approach. I can agree that it is important, but other things rank much higher on my list. Everyone needs to decide for themselves.[/QUOTE]

Agreed.

Nice post and I just want to add that TheLastBear is right, there are different ways to trade and they all depend on the individual trader. No one way will make you profitable. It is this coming together of different strategies and reasons for trading that bring together the traders to the marketplace and causes price to change. Simple supply and demand. What you need to do, is find your own edge.

7

Yeah, but at the end of the day use news, indicators heck, use a magical wand if it means being a successful trader.

8

[QUOTE=“koji123456;700712”]Yeah, but at the end of the day use news, indicators heck, use a magical wand if it means being a successful trader.[/QUOTE]

Haha yup. Use whatever makes you win…

You are right in that news is important. News and macro factors are the biggest price drivers. Learning to decipher them is not easy, but once you can do it it can become fairly profitable. Once you have spent time learning all the normal FA and TA strategies, start looking into market microstructure. That will teach you the how and why of price moves, and the important concept of liquidity. Then, you need to think about liquidity structure around news time and what news factors the market is focused on and which won’t matter. You need to figure out which news factors will cause large order flow to hit the market, and then make your best highly probable assumptions on your understanding of markets and enter trades. You can build some really good strategies around trading the news.

9

Oh and you don’t have to focus solely on one type of strategy such as fundamental analysis. You can combine strategies to come up with as near as A+ as it gets. Many very profitable traders combine both TA for entries and exits and FA for trade direction and length. At the end of the day it’s up to you.

10

thanks for the information it was really helpful news is a one of the major market movers but not every time

11

Everyone has different approach for trading in forex market, unlike you I don’t give too much attention to news, I mainly trade on daily time frame using price action strategies.