Basic rules of entering the forex market
1. A tranquil trend, which confidently moves in a certain direction better than sharp fluctuations in the rate. To choose such a moment is quite simple, just look at the chart of the currency pair and if it does not have long candles and sudden transitions, you can open a deal.
2. Do not rush opening of the order should be made only in the event that all signals confirm the existing trend. It is better to open 2 profitable trades than 5 three of which will be unprofitable.
3. Do not forget about the future before opening a new order, you first need to assess the prospects that are waiting for this currency pair in the near future. It’s clear that you can not know all the news in advance, but you can see some of them in the forex calendar. The idea is to open a deal if half an hour is planned to publish changes at the discount rate or new data on inflation will be presented. Both of these factors can easily change the trend direction to the opposite.
4. Evaluation of the dynamics of the market and the size of the transaction on Forex before you open a new position, it will also be worth it to think about how long you are going to keep it. The security of the transaction must be greater than the correction in this time interval. If it is larger, go to a shorter time frame or wait for another time to enter.
It is no longer a secret that the market is moving cyclically and, if desired, it is possible to identify certain forex patterns in it. To do this, it is enough to study the history of the movement of the desired currency pair on its chart, after that you may notice that for example:
On Friday, the trend often slows down its movement, and a fairly strong correction occurs, as most traders close their deals. For example, there is an upward trend on the market, it is understandable that most of the orders in this case will be opened for purchase, their simultaneous closing will lead to a significant increase in the offer of the base currency, thereby triggering a pullback against the trend. What is not the place to open short-term positions for sale?
Such moments can be identified quite a lot, do not expect that one of the professionals will fully disclose their secrets of trading on Forex .