Learning to trade Forex the right way can be a daunting exercise, it is never easy as it is made out to be by many bloggers, and ooh!! by the way, many bloggers are just that, bloggers, some of them have never seen a trading platform yet they provide us with lots of information concerning the subject, it helps sometimes not to swallow everything that we read, but also use our own strategies and so forth. When it comes to Forex trading there are lots of currency pairs that we can look at, but again as I have mentioned already that learning forex can be a daunting exercise, there is a lot to grab and we cannot really grab everything at once, I am here to share how I did it and how I continue to do it, I am here to share with you how to learn forex step by step the easy way. It is hard enough to try to acquire the skill, let alone trying to keep tabs on all the currency pairs that we have on our trading platform. There is a better way that I exercised and it worked, in fact I still use this method, I will keep it very short.
LESS IS MORE,CHOOSE ONE OR TWO MAJOR CURRENCIES TO FOCUS ON:
When I started trading I was trading almost everything that is on my platform, I traded all the cross currencies and majors even the exotic currencies, I traded all, somehow I felt “smarter”getting my hands on everything you know, I know a lot of traders who still feel very smart by getting their hands on everything, i really thought it was the best way just to try my luck on everything, but as I went on, I realised that i did not really need to do that, I then decided to downsize my currencies. I selected few and started to watch them closely. For a beginner it is better to select one or two currencies, select from major currencies preferably because major currencies are more liquid and their spread tends to be a bit lower than cross and exotic currencies. Once you have selected your currencies, put all your focus and energy on them, learn as much as you can, if for example you selected USDJPY and EURUSD, you then need to start with knowing where they tend to reverse, all the economic news affecting them, know when the economic news happens, read, read ,read, while demo trading just those 2 currencies, one more thing to learn is how those currencies correlate with other currencies or CFDs (Gold, Ftse100, Dow Jones, Dax, Nasdaq, they are all referred to as CFDs on the platform) by doing so you will also avoid trading the same thing, because two is just a start you will want to add more currencies as you go along, it is then better to know the correlation (when the price of two currency pairs move towards same or opposite direction) so that you do not find yourself adding what you already have in terms of how the price move. It is the simplest steps or changes that make huge impact on our trading, if you have been trading for a long time and you feel a bit”exhausted”about all this currencies, make a change today, select few, it makes trading more fun and easier. Thank you for stopping by, please do share this post using the share buttons below if you find it helpful.