Basics Profit Tips For Beginner - Learn Forex

Here we will look at forex charts and basics for beginners and novice traders on what they have to do enjoy currency trading success. Charting is not a science, it's an art but if you learn the basics below, you will soon be using forex technical analysis forex confidently and enjoy success.

Here are your forex chart basics for success.

1. Pick a time frame

Forget day trading it simply does not work as the time period is to short. You can either follow long-term trends and swing forex trade. The former has the biggest profit potential but requires plenty of patience and discipline and the latter sees trades come more often and requires less discipline.

2. Best Singles =

Keep your forex charting system simple-simple systems work better than complicated ones.

Why?

Because they are more robust and do not have as many elements to break.

3. Do not Predict

Many traders think they need to predict forex charts with their prediction but is doomed to failure-Why?

- Because you are guessing and hoping and this is not a good way to make money in any market - especially forex trading.

You need to confirm all your moves with price action. We will come onto this in a moment but first let's look at the basis of all good forex chartists systems.

4. Support and Resistance

If you do not know what it is look it up, it's an essential part of anyone's forex education.

All good forex trading systems understand it and use it.

You need to trade valid support and resistance. This means as many tests as possible (but no less than 2) in as many different time frames and the wider apart the better. If it's valid, you can trade into to it and look for it to hold or break and catch new trends.

5. Confirm Do not Predict

For example - if you want to buy into media do not just jump in support holds hope wait for a turn in price momentum and use leading indicators such as ADX, the stochastic and RSI (there discussed in our other products) and trade the reality price of change.

However Do not think of just holding trading levels look to trade:

6. Buy Or Sell Breakouts

It's a fact that most big trends start from new market highs NOT market lows.

While you do not buy low and sell high you do something that's very profitable-you buy high and sell higher. All the best forex chartists do this and you must to.

7. Subjective Not Be Objective

Ignore indicators that mean you have to make to many subjective judgments, go for combined indicators that give you a clear trading signal - NOT indicators like Elliot Wave cycles etc. where your emotions could get involved. The above are the bare basics you need to know when using forex charts and they should form the basis of your forex trading system.

Keep in mind keep it simple-simple systems work best are easy to understand and easy to apply and if you use objective indicators, you will keep your emotions out which are the enemy for most traders.

Forex charts can make you a lot of money, so learn how to use them the right way and currency trading success could be yours.