Timing matters in trading foreign currency exchange. The only way to gain a good sense of timing is through practise. Fortunately, many “demo accounts” are available to help you gain this sense of timing without risking your own money. The best way to do this is to trade the same trade on several different “demo accounts” at the same time, varying the amount of leverage you use in each account. This will give a sense of the respective speed that a trade can move at various leverage ratios and you should be able to establish which leverage ratio works best for you. Beyond this, experiment with various charting indicators and make sure that you have the best set-up for the currency pair that you are trading. If not, change.
In Asia, an “Ichimoku cloud” is considered to be the best charting indicator (for exposing trends, identifying support and resistance levels as well as trade entry and exit points) of them all. Test whatever indicators you are using against “the cloud”.
Why Time Matters When Trading Foreign Currency Exchange
Forex is one of the largest capital markets in the world. It’s filled with a wide variety of participants that march – very loudly and heavily – to their own drummers, such as: central banks, commercial banks, supranational funds and hedge funds. They’re on an agenda; don’t get in their way. Where they’re piling up is not hard to figure out. Usually, it’s around a pricing level that may give way because of the “next speech” listed on the global economic calendar in your trading platform. Or, it’s because of an upcoming press conference by a central bank chairman. In any case, you can see that “time is of the essence” in forex. So, “be there or be square”.
Improving Foreign Currency Exchange Trading Timing
Realistically, if you’re already reading the news and intently watching the hourly (or 15-minute) chart of your favourite currency pair, the only way that you can improve the timing of your trades is by adding a “better” indicator to the bottom of the chart that you’re trading off of. Depending upon what you already have on that chart, this may or may not be possible (in other words, you already may have the best set of indicators on your chart and you don’t know it). One way to test how good your indicators are is by putting an “Ichimoku cloud” on your chart. In Asia, “the cloud” has been confirmed (repeatedly) as the best single trading indicator of them all.
Holding Your Nerve With Foreign Currency Exchange
Trading forex is a little bit like learning how to drive a car. In the beginning, you are petrified. So, you spend many hours reading up on everything you know in order to pass your driver’s exam, trying to squeeze in as much practise time as possible. Then comes the big day and you pass. Congratulations, now, you can join the big time out on the freeways! But, there’s a problem. You know you don’t have enough experience (and, you’re still a little bit scared). Well, in forex, that’s not a problem because you can always practise on a “demo account” until you’re ready to roll with your own money. This is how you gain confidence and “the edge”.