When you start out as a trader you sometimes have the feeling that you have to learn everything at once. And for the most part this is true. However, the more time you spend on cementing the core essentials or the absolute basics, the easier it will be when you move on to more advanced topics.
This video shows you that there is more to the core of forex trading than you might think when you first get into trading. There is more to trading than just following indicators or strategies. How successful have you been selling at every supply level? Or using a limit order at every support or resistance? Probably not so successful, because it simply doesn't work like that. The forex market is exactly what is says it is, an actual market.
Cementing the core of forex trading
One of the most important things when starting to trade is to keep thinking logically. Simple concepts like that price will not go up forever, or that price can react from a certain area because it holds value; often seem to be forgotten. There can be various reasons for this, like psychology or the inability to grasp that the forex market works just like any other market place. So you need to figure out why things happen. Be curious, ask the 'Why'-question all the time or use a story of another market place to make the price action more tangible, like Navin mentions in the video.
Spend a lot of time getting educated on the basic technical things like support and resistance, supply and demand and trends.
Final Words
Dare to ask yourself what kind of trader you want to be and whether the strategy you're using now is suitable for you. You need to know your strengths and weaknesses to determine which time frame suits you best and which style. Can you deal with the prospect of having a relatively low win percentage and thus quite a few losses, but when you win you win big? Or are you more conservative and steady?
All these questions are important to ask yourself. And the sooner the better. They will help you focus on the core things you need to work on most.
Watch the video above for the full lesson so you can continue to enhance your skills and be better everyday.
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Editors’ Picks
EUR/USD flirts with daily highs, retargets 1.1900
EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.
GBP/USD remains well bid around 1.3650
GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.
USD/JPY edges up above 153.50 with all eyes on US CPI figures
USD/JPY appreciates above 153.00 but remains on track for a 2.4% weekly loss. Trading volumes remain subdued on Friday, ahead of the IS CPI release. The Yen remains supported by hopes of a stable government and calls for further BoJ tightening.
Editors’ Picks
EUR/USD: Yes, the US economy is resilient – No, that won’t save the US Dollar Premium
Some impressive US data should have resulted in a much stronger USD. Well, it didn’t happen. The EUR/USD pair closed a third consecutive week little changed, a handful of pips above the 1.1800 mark.
Gold: Metals remain vulnerable to broad market mood Premium
Gold (XAU/USD) started the week on a bullish note and climbed above $5,000 before declining sharply and erasing its weekly gains on Thursday, only to recover heading into the weekend.
GBP/USD: Pound Sterling remains below 1.3700 ahead of UK inflation test Premium
The Pound Sterling (GBP) failed to resist at higher levels against the US Dollar (USD), but buyers held their ground amid a US data-busy blockbuster week.
Bitcoin: BTC bears aren’t done yet
Bitcoin (BTC) price slips below $67,000 at the time of writing on Friday, remaining under pressure and extending losses of nearly 5% so far this week.
US Dollar: Big in Japan Premium
The US Dollar (USD) resumed its yearly downtrend this week, slipping back to two-week troughs just to bounce back a tad in the second half of the week.
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