Making money in Forex is not as easy as some people think. Statistics show that 95% of Forex traders lose their entire account balance. People hear all the time about Forex or day trading and then they think they need to log in to make money, and then all they have to do is set up their trading account and they are losing everything. Now other people may have problems like “emotions,” that is, they lose some money and try to return by successfully doubling or tripling their trading size.
With emotions again, you can be in the BUY trade (you predicted that the market will go UP) and suddenly you see the market sold out (the market went DOWN in the opposite direction) then you get scared and close. take a trade and a loss. But then, on that day, you see the market go up immediately to where you expected it to be.
The Forex Market is very unpredictable for anyone who wants to tell you. However, in this attractive and unregulated market, there are strategies and tools that you can use to plan and increase the likelihood of your business and overall success.
There are some systems / strategies that people use to enter and exit a trade, most of which are indicators that inform the person when they are entering and leaving a trade. But not all systems work at all times, the market changes and evolves and then the systems will have to adapt, and so on.
There are many different tools in a Forex chart system that help the trader to make a technical analysis of currency pairs. Some of the most used tools are Fibonacci, Trend Line, Candlestick, Pivot Lines and so on. It has different time intervals that you can use to help predict the forex charts, such as 1min, 5min, 15min, 30min, 60min, 3hr, 1 day. So for example, if you want to know if a trend is up or down, one way to do that is to check for higher time intervals, which gives you a better chance in your trades.
There are two types of trading: Basic and Technical. The basic analysis is trading in what the market controls or moves, examples are important news, gold or oil. So if there was any news about the unemployment rate in the US tomorrow morning and the number that came out would be very negative, that would be bad for the US and so you would want to put a SELL in a couple of USD. It is mainly for experienced traders because it has a high volatility. Technical analysis mainly uses chart tools and systems / strategies, which is the most common way to trade and is done by everyone.