Have you been trying your luck in the foreign exchange traded funds for long but unable to achieve a satisfying result? Ask me then as I have been through a similar situation a couple of years ago. Since I had started trading in the foreign exchange market as a newbie with no relevant skills and experience, I stumbled upon many hurdles and had to combat many adverse situations. Finally, as per my friend’s advice, I hired the services of a forex broking firm which came to my rescue by offering well-researched forex trading plans and a few handy tips to enhance my skills in the trade. Today, in this blog, I am going to share some of those tips with you all so that you do not need to struggle any longer to achieve the goals in the forex market.
Introduce you to the forex terminologies: I still remember that on the very first day my forex broker made a statement to me ‘introduce you to the forex terminologies’ because he wanted me to be gradually accustomed to the world of forex trading. Some of the most commonly used words in the forex which you cannot avoid but make an integral part of your life are spread, leverage, margin, margin call, hedging, rollovers/swaps, commissions, expert advisor and others. Trust me, knowing these terms and getting familiar with them will make your life much easier when it comes to the forex trading. Also, getting used to the forex trading interface and tools available in the market will make your trading experience convenient.
Read and read more: There’s no substitute to do an extensive research work and read forex books and journals for attaining the success. Some of the popular forex trading books are Currency Trading and Intermarket Analysis: How to Profit from the Shifting Currents in Global Markets by Ashraf Laïdi, ForeX Trading for Maximum Profit: The Best Kept Secret Off Wall Street by Raghee Horner, Thirty Days of FOREX Trading: Trades, Tactics, and Techniques by Raghee Horner and Currency Trading for Dummies by Brian Dolan.
Follow forex charts and news: Forex charts and forex news are the other vital tools for enhancing knowledge and at the same time monitoring the market movement. While forex charting will help you to magnify the trading returns, forex news will provide you with the analysis of the recent happenings throughout the forex market across the globe. Also, the experts’ views on the forex market could be a great source of skill enhancement.
Know the fundamental and technical aspects of trading: The technical analysis of forex is similar to that of the technical analysis of stocks but trickier is the fundamental analysis. In the case of the latter, you need to analyze the forex pair of each country because all trades in foreign exchange or foreign exchange hedge fund involve the relative value between two currencies such as the US dollar v/s euro. The global economy also weighs on both countries, and you need to decide the effect on each and compare them to one another. Focusing only on one aspect of analysis and not on the other would be less effective on your forex return due to the highly volatile nature.
Author’s bio: Narnolia Securities Limited is a premium full-service brokerage house that offers a wide range of financial service like trading, portfolio management, mutual funds, NPS and many others. Having a clear objective of creating wealth for the investors and uplifting the overall financial well-being of the country, Narnolia has crafted a reputable name as a wealth management firm.