What are the important things that need to be understood by a trader ?
There are some traders who principled or pips results-oriented , according to how important they are in our understanding of the world of forex , trading system or method used , can generate profits in its core markets. I personally respond to these thoughts with positive reactions , but we should have an understanding and trading system that can be accounted for . It's a little tricky , if we consider forex trading as a business , then every decision we make should be based on rational and scientific considerations are strong .
back to the fundamental understanding of the problem , the main thing that is most crucial for a trader is to understand the price movements . Of course, from that understanding , then analyzed for the conclusions drawn what position will be taken , how and how much TP SL , and how many lots are set . For traders fundamentalists , they understand the price movements by monitoring the news , because every news has different levels of impact and predict depending on market reaction to the news . As for technicalist traders , understanding price movements by referring to the data mathematically . And the fundamentalists , everything that happens in the market based on past events and that history always repeats itself .
For a technicalist , when understanding the price movement , know the components of price movements as follows :
back to the fundamental understanding of the problem , the main thing that is most crucial for a trader is to understand the price movements . Of course, from that understanding , then analyzed for the conclusions drawn what position will be taken , how and how much TP SL , and how many lots are set . For traders fundamentalists , they understand the price movements by monitoring the news , because every news has different levels of impact and predict depending on market reaction to the news . As for technicalist traders , understanding price movements by referring to the data mathematically . And the fundamentalists , everything that happens in the market based on past events and that history always repeats itself .
For a technicalist , when understanding the price movement , know the components of price movements as follows :
- Trend - a tendency to move in one direction if it is bearish / bullish
- Volatility - periodic fluctuations
- Momentum - the rate of acceleration and deceleration
- Cycle - a tendency to move in cyclical patterns of certain repetitive tendencies , in the short term is called sideways
- Market Strength - the number of transactions to support these movements
- Support and Resistance - the tendency to rise or fall to a certain level and then vice versa , repeatedly
Most do not understand the above components are able to be added value in taking the right decision in trading. Regardless of where or how to obtain the data we need to process the data . That said, we are in the era where all sorts of information from many sources can be processed and presented in real - time so that we can trade with ease plus . We can take advantage of the trading platform provided free of charge by the broker to process the data obtained . How to use the indicator to visualize what you want, which basically provides information about the components of price movements above . In addition , today many indicators with different visual appearance and with a variety of characteristics that you can use without the need to do the programming . Even if they can , you can create your own custom indicators .
The most important thing is how you understand what is indicated by the indicator . And apply them properly in accordance with your trading system . There are many indicators that you can use for the component market . For example, to read the trends , you can use the Parabolic SAR , Moving Average or family .
For volatility and momentum , you can use MACD , RSI and the like .
For cycle - resistant and support you can use Fibonacci or pivot .
For the strength of the market , you can monitor directly in your candlestick or bar charts show the volume .
So , your job is simply to make the combination of the indicators , and then take a decision based on your understanding of the data and the indicators . The more you are trained , the more accurate your analysis . By using a strong base in decision making , regardless of the results we obtained , we can capture the benefits . Loss or profit , just the impact of a forex transaction . Although we turned out loss , from there we can take a lesson so that does not happen again making the same mistakes . That's the world of trading , our analysis sometimes bolted . Remember , any trader world will never be immune to loss . So just relax .
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Forex is not something to fear, but fear when you are not able to control yourself in the forex or whatever. When profit in forex it becomes your personal responsibility, and when you lose in forex it also becomes your personal responsibility. Forex simply as a facility to achieve financial freedom, no more no less. Forex is a place to think realistically.
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