5 forex trading techniques for beginners and professionals

VINSON FINANCIALS

5 FOREX TRADING TECHNIQUES FOR BEGINNERS AND PROFESSIONALS

TEL. (+357) 250-288-6163 GENERAL@VINSONFINANCIALS.COM WWW.VINSONFINANCIALS.COM

VINSON FINANCIALS

Trading in forex requires just the right balance of observation, reasoning, practice and decisiveness. Understanding when and what currencies to buy and sell can make a big difference in the profits you make and the losses you incur. Thankfully, there are some tried and tested forex trading techniques that you can look up to in case you’re feeling lost amidst the confusion. These fx online trading techniques are good for beginners as well as professionals. While the beginners can leverage the set and defined framework of these techniques, the professionals can experiment with more than one of these techniques from time to time.

Here are the top 5 forex trading techniques for professionals and beginners that forex traders can try their hand at:

Technical Analysis Technical analysis is one of the most reliable long-term forex trading techniques. What this technique involves is analysing the past and current behaviour of the pricing trends of the currencies in order to predict how the trend patterns will change in the upcoming future.

Technical analysis relies on the theory that forex movements are largely dependent on factors like mass market psychology, supply and demand, meaning forex prices are likely to move according to specific patterns and within predictable ranges. Forex trading websites often provide different methods to detect and predict possible currency trends.

Fundamental Analysis This is another reliable forex trading strategy that works well in the long term. In this technique, a foreign exchange trader looks at the fundamental indicators of a country’s economic conditions to evaluate whether the country’s currency is overvalued or undervalued and estimate how the currency’s value is likely to change with respect to other currencies. This technique is complicated because it would require you to thoroughly study the country’s economic data including information about trade and investment activities that are planned for the future.

PAGE 02

VINSON FINANCIALS

Swing Trading Swing trading is ideal for traders who want to maintain a medium-term trading period, like for a week. In this technique of trading, you identify the highs and the lows that may occur in the price movements(swings) within a time period and accordingly decide your entry and exit points in the trade for that time period. The advantage of this type of trading over intra-day trading is that it helps to forgo the insignificant price movements that occur throughout the day.

Trend Trading A commonly popular form of forex trading and one of the basic techniques of initial forex learning, trend trading is about recognising the positive or negative trend direction in the price movements of a currency and deciding the entry and exit points in the trade on the basis of factors like what’s the currency’s price positioning within the trend and how strong is the trend likely to hold.

Momentum Trading Momentum trading is all about keeping up with the current momentum of the price movements. It is based on the hypothesis that if price movements have been moving in a particular, whether positive or negative, direction then it’s likely that the price trend will keep moving down that road.

PAGE 03