The important thing to remember about FX trading is that this is a market that trades around the clock. In addition, these markets have high liquidity which allows an individual to trade with a very high leverage. For instance, if you have an account with $5000, you can easily trade a position of $500,000 on the Australian dollar. So it's easy to see that fortunes can and will be made in a short period of time if an individual knows exactly how to get the edge. Here you're going to learn more about FX trading, and how someone like you can get the edge when it comes to making that unique trade.
For the most part, getting the edge will begin by getting an FX broker who can provide you with the necessary tools needed in order to be successful. This will include free services such as live FX data, analysis, and all the information that teaches you all the fundamentals of this form of trading. When it comes to live data, you'll want to see daily and weekly tick by tick bar charts. This will allow you to see all movements in the market throughout the day whether they are up or down. What you'll notice right off is that this is much different than that of a share trader because once their market closes, they can no longer watch the market. However, when it comes to FX trading, you will be able to watch movements more often which allows you to learn more in less time.
Now, in order to get the edge when it comes to charts is to understand how they work. With the right brokering service, you will have access to one minute bar charts, a daily chart, a weekly chart, and even monthly charts. Now each of these charts will be set up in different time frames. For instance, with a one minute bar chart, decisions have to be made almost in an instant. If you're working on a daily bar chart, you will have a lot more time to make a decision in terms of calculating risk, assessing the trade, and preparing for your orders to be placed. One of the things you'll notice when watching these charts; however, is the fact that you will begin to see patterns forming on a consistent basis.
These patterns begin to make sense in terms of when a trade needs to be placed, and how soon you will need to place that trade. Now for those of you they can think on the fly, you may opt for the one minute bar charts. However, for those of you that need a short amount of time to make a decision or find yourself struggling with trades, you may want to think about increasing your timeframe between decisions. This is how you get the edge when it comes to FX trading. By learning how these processes work, and understanding the fundamentals. By utilizing the information provided here, you will become a better trader by learning what has been provided here, and striving to learn more.
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FX Trading - Getting the Edge