hi, i have been coming across various methods for trading the currencies. there are technical anlaysis then there is fundamental. but i can’t seem to grasp what really is good.
what are your methods? btw, do you trade the trend after new data is out?:37:
trading styles all depend on the trader. None is really better in my eyes, you just have to be disciplined. Some people understand fundamentals and will swear by them. Others trade pure technicals and swear by those. There is no set method which is better, if there was, why would there be discussions on trading?
Each has its place in the market, it’s your job to identify which is for you.
I personally choose technicals because I can’t trade all day and don’t have time to research every news item that comes out. My macro-economic knowledge is decent, but I consider my technical knowledge to be greater and thus rely on it more.
I hope that gives you some direction. What works for others may not work for you, try different things on demo and identify what works better for you. Then learn that method inside out and adapt it to your trading style.
Happy pipping
i also realise intuition is very important, there is no way you know when is peak and when you should sell. the only way is to judge accordingly. there is fibo but not always there, so what can be done to know when to sell or buy?
You need to have a good idea about both technical & fundamental analysis. Before fundamentals, learn about technicals.
i find that technical is not foolproof, you may be applying your fibo or stoch. divergence. but when the news is out, it react and may not go the way it should be. agree?
Here’s what I’ve recently employed in my return to forex trading after a year or so off. Trading higher timeframes and waiting for confirmation are KEY to trading, otherwise you’re just guessing with less to go on, and you may as well be in a casino.
When to sell and when to buy can depend on a million and one different factors. I’d suggest looking into and understanding price action inside out, elliot wave theory, fibonacci studies, candlestick patterns, important fundamental reasons for why currencies move, and the importance of news releases ALL AS JUST A START in developing what style you like. Each of those above topics will give you different aspect into how markets move and why they move. I think it’s important to know all rather than just one, because the more tools you have the better.
When to buy and when to sell will explain itself in each of those theories. Then it is up to you to use them however you’d like and to practice.
and in the opposite manner, fundies are not all foolproof either. Ever noticed a good economic release go the opposite way? Why? Could be tons of reasons but how would you know? That’s why I chose to focus on technicals first, and AVOID the news as best I could. That means no trades during a news release that is major.
You’d be surprised at how many headaches and bad trades you can avoid
thanks, your reply is what i need. very useful, cheers!
i noticed the movement in opposite manner is due to overall picture. i am a soul believer in news and think it works.
from what i observe, there are some form of manipulation in the currencies by big financial institutions. that may also be why sometimes, the currencies move in opposite despite good data.
+1 I use to try and use both, but I’m strictly tech. The problem with relying on the news IMHO is it can be manipulated by the people giving the news to suit there own ends. Especially avoid announcements that say: This: could, might, maybe, on the one hand, might-could-be etc . . .this happen. And what about when the numbers are givin then in the next breath adjusted. I agree with my friend above avoid the headaches and bad trades.
yes, agree, the figure may be not real, but it’s definitely better than statement by central banks. My profits for the past 6 months were wiped off by half when bernanke spoke in earlier this month.
Perfect example.
We all makes mistakes. I make mistakes many many times and I still am on my trades but I don’t blame it to Uncle Ben ( just an example) as to why 50% of my profit was gone. Maybe I get in too early before the speech and did not wait for the statement to come out? Maybe I didn’t do my homework before I got in to that trade? Did I check the calendar/ schedule when this speech will take place? There are so many reasons as to why mistakes happen. I think it will be much better off to admit that I make mistakes rather than blaming it on to the speech events as the main reason as to why I lose money this way I can correct that mistakes and minimize it somehow…
By the way, fundies are a great tool to trade if you know how to use it 