Saturday, October 17, 2015

forex or stock trader

It takes experienced traders to trade these markets but a trending one is easer to work with, but investors or long term traders have trouble in a range bound market. The range-bound highly volatile low volume trader’s market is not for trend trading. Learn to read your forex platform charts and graphs. Ignorance is the first step towards failure. As a forex or stock trader you need to understand the difference in these types of markets to make more money in your trading. You need to use tighter stops if the markets are range bound to keep from blowing up your account. Normally day traders will make trades all day long in a chopping market only to see that they have lost money. Trading a chopping forex market is very difficult to do even for experienced traders.
You need to try longer time frames and do some swing trading you will have a better chance to make some money. learning to read your charts and staying with the trend is better then just blindly trading a chopping market. Look at time frames of four hours or more and you can identify the trend much more easily. You can see support and resistance levels and stay away from the chop of shorter time frames. This is where you can make better trading decisions especially trading the forex markets. Longer time frames will also keep you away from the spikes caused by news releases.Forex markets will settle down and resume the trend after news is released. It is much safer to wait till after any kind of news to make your trades. Look for the support and resistance area on charts to set your trades and you will be making less risky trades.