Profitable Tips for Forex Day Trading

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Profitable Tips for Forex Day Trading

So you have decided to trade foreign currencies. You will have to decide which market in which to trade, which will in turn determine what hours of the day you work at the trade station. Which market you trade in, London, New York, or Tokyo, will also affect which currencies you choose to trade. You will need to choose hardware and software and develop the necessary skill sets in order to function as an online currency trader. You will need to learn how to do fundamental analysis of Forex pairs as well. With this in mind here are a few profitable tips for Forex day trading.

Choice of Trading Pair

The first of our profitable tips for Forex day trading has to do with picking a currency pair to trade. Traders make their money because of Forex market volatility. Forex traders control their risk because they understand the fundamentals that drive each of the currencies that they trade. Traders commonly choose currencies that trade in high volume and liquidity in order to most effectively use technical analysis tools such as candlestick patterns in Forex trading.

Majors versus Minors

The next of our profitable tips for Forex day trading relates to picking a major or minor Forex pair to trade. Technical analysis of major Forex currencies is commonly more accurate than for minor currencies. This is because of the high trading volume and liquidity of major currencies. Minor currencies can often be very volatile but they can also be very unpredictable. In trading minor currencies one should be well versed in their fundamentals. This may even require that you are a native to the country involved or live and do business there in order to understand the various factors that drive the currency.

Fundamentals

When trading two minor currencies or trading a major versus in minor Forex currency, fundamentals are of upmost importance. This may be the most important of our profitable tips for Forex day trading. Although the major currency may trade in high volume it will trade in substantially lower volume versus any of the minor currencies. Thus there may be frequent gaps in trading such a currency pair. Trading gaps and anticipating them can be quite profitable if you are well verses in fundamentals but can be risky as well. Those trading a major versus minor currency will do well to trade in small amounts until they are comfortable and successful in predicting swing in currency prices, especially as relates to the minor currency.

Technical Analysis

Technical analysis is a mainstay of Forex day trading. The last of our profitable tips for Forex day trading has to do with a tried and true approach to technical analysis of Forex pairs. Centuries ago Japanese rice traders discovered that price patterns repeat themselves.

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Profitable Tips for Forex Day Trading

  1. 1. Profitable Tips forForex Day Trading Bywww.TheForexNittyGritty.com
  2. 2. So you have decided to trade foreign currencies. You will have to decide which marketin which to trade, which will in turn determine what hours ofthe day you work at the trade station. www.TheForexNittyGritty.com
  3. 3. Which market you trade in, London, New York, or Tokyo, will also affect which currencies you choose to trade.You will need to choose hardware and software and develop the necessary skill sets in order to function as an online currency trader. www.TheForexNittyGritty.com
  4. 4. You will need to learn how to do fundamental analysis ofForex pairs as well. With this in mind here are a few profitable tips for Forex day trading. www.TheForexNittyGritty.com
  5. 5. Choiceof Trading Pairwww.TheForexNittyGritty.com
  6. 6. The first of our profitable tips for Forex day trading has todo with picking a currency pair to trade. Traders make their money because of Forex market volatility. www.TheForexNittyGritty.com
  7. 7. Forex traders control their riskbecause they understand thefundamentals that drive each of the currencies that they trade. www.TheForexNittyGritty.com
  8. 8. Traders commonly choose currencies that trade in highvolume and liquidity in order to most effectively use technical analysis tools such as candlestick patterns in Forex trading. www.TheForexNittyGritty.com
  9. 9. Majorsversus Minorswww.TheForexNittyGritty.com
  10. 10. The next of our profitable tips for Forex day trading relates to picking a major or minor Forex pair to trade. Technical analysis of major Forex currencies iscommonly more accurate than for minor currencies. www.TheForexNittyGritty.com
  11. 11. This is because of the high trading volume and liquidity of major currencies. Minor currencies can often be veryvolatile but they can also be very unpredictable. In trading minor currencies one should be well versed in their fundamentals. www.TheForexNittyGritty.com
  12. 12. This may even require thatyou are a native to the country involved or live and do business there in order tounderstand the various factors that drive the currency. www.TheForexNittyGritty.com
  13. 13. Fundamentalswww.TheForexNittyGritty.com
  14. 14. When trading two minor currencies or trading a majorversus in minor Forex currency, fundamentals are of upmost importance. This may be themost important of our profitable tips for Forex day trading. www.TheForexNittyGritty.com
  15. 15. Although the major currency may trade in high volume itwill trade in substantially lower volume versus any of the minor currencies. Thus there may be frequent gaps in trading such a currency pair. www.TheForexNittyGritty.com
  16. 16. Trading gaps and anticipatingthem can be quite profitable if you are well verses infundamentals but can be risky as well. www.TheForexNittyGritty.com
  17. 17. Those trading a major versus minor currency will do well to trade in small amounts until theyare comfortable and successful in predicting swing in currency prices, especially as relates to the minor currency. www.TheForexNittyGritty.com
  18. 18. Technical Analysis www.TheForexNittyGritty.com
  19. 19. Technical analysis is amainstay of Forex day trading. The last of our profitable tips for Forex day trading has to do with a tried and trueapproach to technical analysis of Forex pairs. www.TheForexNittyGritty.com
  20. 20. Centuries ago Japanese rice traders discovered that price patterns repeat themselves. Using this knowledge theydeveloped a set of signals thathelp traders predict future price movement solely based on previous price movement. www.TheForexNittyGritty.com
  21. 21. These clear and easy to readsignals are in use today in trading stocks, commodities, and Forex. Study Japanese Candlesticksand learn to use the Doji, BearishEngulfing Pattern, or Three BlackCrows to profit from trading Forex currencies. www.TheForexNittyGritty.com
  22. 22. For more insights and usefulinformation about Forex visitwww.TheForexNittyGritty.com

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