Forex Fibonacci Analysis
Forex Trading – How and why prices really move
It is hard to forex trading and 95% of traders can not win.
So how do you do it and its strategy of forex trading is a success?
Here are some tips.
1. Use Currency technical analysis as the basis for its strategy of forex trading.
Technical analysis and looking at Forex Charts give you a clear advantage, it takes into account both the fundamentals and investor psychology.
Technical analysis simply assumes that all known fundamentals will show immediately in the market price (and in today's world of instant communications is this more true than ever before), but also takes into account human psychology, which always pushes prices measured in any direction.
These price increases are easily identified in Forex charts and repetition (human nature is constant) and can be traded for profit.
If you are forex trading NEVER do the following:
1. Trade the volatility of fundamental news is high and your playing catch up on the news is favorable on the spot.
2. Never mix the fundamentals and technical analysis as there are disciplines separated.
3. While technical analysis is a great way to trade, consider your options and a game not a science.
Humans are unpredictable and, although you can get the odds in your favor nothing is certain.
Ignore people who try to sell scientific theories or tools such as cycles, Elliot wave or Fibonacci-based systems – do not work.
If prices could be predicted with scientific precision all would know the price in advance and there would be no market. Their differing opinions that make prices move.
Trade of the probability of large profits
So you are playing the odds and with a simple forex trading based on technical analysis can make a lot of money. One final point:
If you trade through a technical analysis of currency and use forex charts, keep in mind that you need to use valid data – this means that trade long-term trends.
Avoid trading day as the time period is short and the data does not make sense and be lost.
If you understand the above points you will know how and why prices move and to trade them for profit and avoid the mistakes of the losing majority.
How design a forex trading system for profit based on technical analysis will be covered in Part 2 of this series of articles.
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