Looking the Concept of Forex Market
Everybody like me(in early),don’t know why Forex market move .In broadly say we maximum don’t think or not to think why Forex market move. But you must know about this.When you go to in any market what you think? You must know why you go to market and which product you want to buy.Also you know which market to go,you get your product.So it must know why Forex market move & Question yourself HOW,WHY and When FOREX move.
By find out this question i get some fantastic knowledgeable story in different manner. Lets go to know about this.
How, Why, and When?
When I first started trading Forex, it had never occurred to me to ask these questions. I mean, why would I? The whole Forex educational world (as I understood at the time) was focused primarily on Technical Analysis; some were based on Fibonacci, some on MACD and/or Slow Stochastic, or a combination of technical indicators with different proprietary settings. Seems like the answer to the holy grail of trading lies in the right combination of indicators (at least that was what I thought.)
I still remember the few beginning months of trading; I must have spent over 16 hours a day, 5 days a week, doing an average of 24 trades per day. It was more exciting than profitable, as I quickly went through my live accounts one by one, go them out and re‐funding them, falling in this vicious cycle that many beginner traders seem to find themselves eventually in, unable to get away…
Then, it must have been the fourth or fifth time that I re‐funded my account, I began to lose faith in my trading methods; I started to question whether or not these strategies were even supposed to work? I went to my mentor, and despite of spending even more time and energy in learning and re‐learning the same methods, I realized that everything I have learned up to this point is completely, for lack of a better word, ambiguous. What I have learned was practically based on discretion, (which was designed like that on purpose,) so that anyone who teaches it could interpret either or both ways. In other words, there is no wrong answer…
Then almost by luck, I stumbled onto someone who trades fundamentals, which at the time seemed sort of “taboo” for technical analysts. You might have heard this: “You show me an economic news release, and I will show you a chart pattern”, which was the mentality of many technical traders at the time, and it
was generally believed whether or not one pays attention to the news releases, the results were going to be the same. That was the same half‐truth I was fed with learning Forex…
When I say half‐truth, I don’t mean it as a lie. Forex trading is such a difficult art (not science) to master, one can never say definitively without a doubt that this is it or that is that. Forex Market is actually made up of many parts and the sums of all of its parts are greater than the whole, as illustrated in the diagram below:
You see in this diagram, Technical trading has its place in Forex Trading. But it is just preposterous to assume that was all there is to trading. In order to trade Forex successfully, you need to learn Technical, Fundamentals, Order Flow and Supply & Demand, and of course, Market Sentiment.
Before you get intimidated, let me just say that you don’t need a degree in economics or spend hours per day perusing through news releases. All you need to know are some basic principles and what news releases to watch out for, then prepare for a couple hours a week looking at the market, preferably on Sunday afternoon before the market opens, and then you are pretty much set for the entire week.
Now, let’s go back to the beginning and try to answer these questions, although they may seem basic, they are keys to successful Forex trading…
1. Why does the Forex Market move?
2. How does the Forex Market move?
3. When does the Forex Market move?
Let’s try to answer each question individually in the next chapter 2 . Although they might not be related directly with Fundamental trading, but without having proper understanding of the big picture,fundamental trading would just be another piece of the puzzle that we can’t put together.
Wait for chapter 2…………………………..to be continuing………