Playing on the foreign exchange market is a daily war with the soulless market, with a tightly focused on corporate earnings of players, with no great skill, but many singles. The general, who leads an army to war without a strategy or a madman or a genius. What type belong to you? Is it not better to take care in advance of a clear plan of their Action?
The Forex traders conditionally distinguish three approaches to the game:
1. Long-term strategy;
2. Medium-Term Strategy;
3. Intraday strategy.
They may be called in different ways, but the essence is still the same. Let’s begin step by step.
Long-term strategy. In fact it is not even gambling on the stock exchange and investment. Its advantage is that of a trader / investor requires a minimum participation. This eliminates the need to make quick decisions on which a beginner is not able, and reduces the risk of errors. Long-term trader not passing over the small daily fluctuations in prices. The period of time, which he operates – a week or even month.
Choosing a long-term strategy, do not rush to conclude the deal immediately, take a week time-out. Explore the fundamentals, analytical reviews, check, check (or even charged) with the experts or more experienced traders. And only then buy.
Now you can relax and go about their business. Ignore the news, except those which directly affect the status of the transaction. For example, statements of the U.S. market, which are the basis for speculation in the world.
The disadvantage of long-term investment can be regarded as the inability to play for a fall. Even if your actions steadily increasing over the years, they do not do so uniformly, and steps. Ups alternate with failures, followed by another big ups. From all these oscillations can profit by using a medium or even short-term (intraday) strategy. The working interval of time for them to week or day, or even 5, 10 minutes.
Mid-term approach would include daily tracking of quotations. Check the schedule of prices should be at least twice a day: the opening and closing sessions. This will help identify good entry points for a game or a dangerous trend, when it is time to go. Two or three deals a week can be considered a normal level, not try to increase their activity. Excess control force to respond to the random ups and downs. In implementing the medium-term strategy fundamentals are losing relevance. Here, in the foreground is a technical analysis, that is, work with graphs of prices. News background, too, will have to pay attention. Timely response to the most important news that determine the behavior of the foreign exchange market over the next few days, will guarantee success. If you want to learn to play it, and not just to invest – such a strategy would be the best choice.
Short-term or intraday game – a lot of professionals. It is not even so much that the skills should be to hone to perfection, but that you have to give the game all the time. Computer trading program will be your job, you should not even try to combine it with another. Technical Analysis (often intuitive, at the level of graphical analysis) and the tracking of speculative news – the foundation of success. If you play the market less than a year, not recommended at this level. Your blood is too much adrenaline, which inhibit the take the right decisions.