Just imagine if you could find a way to earn lots of money online. I’m sure you’ve thought about it. Did you know thousands of people like me are doing this every day? One method that’s gaining loads of attention is Forex currency pair trading. With the right currency trading strategies, you can turn a small investment and your PC into a large revenue stream.
There are basically two forms of trading that are most popular. I’ll discuss both.
1) Manual Currency Trading Strategies
The basis of this type of trading requires a thorough understanding of price charting techniques. The most common are known as candlestick charts. They are called this because they resemble candles. Price is represented graphical by drawing the open, close, high, and low of price for the time frame of the specific chart. For example, if you are on the 1 hour chart, the candle will take one hour to form. The top and body of the candle body represent open and close points and the wicks are the highs and lows.
There are many signs that people believe help you interpret where price is heading. When candles look a certain way, they can mean price is about to reverse. You may hear or read about candle formations like, spinning tops, hammers, train tracks, doji’s and more. All of these may mean price is about to reverse.
Support and resistance are tools that manual traders love. They use trend lines to depict where the charts support and resistance points are located. It’s believed that these lines represent places where price will have a difficult time to go past.
Chart patterns are another method that manual traders hunt for. These are formations that reoccur over and over again. When you find one, it may help you determine the currency pairs price movement.
Indicators are almost always used with charting techniques. These help pinpoint where price is reversing. They are based on overbought and oversold conditions. Common ones are RSI, MACD and stochastics.
There are many more tools to understand in order to become a successful manual technical trader. You need to use most of them at the same time to help paint a picture as to where price is heading next. It is highly subjective. Two people could use the exact same tools and come up with completely different ideas. This type of trading is extremely difficult to master. It takes months to get anywhere with it.
2) Automated Currency Trading Strategies
New programs have been created that take the currency trading strategies of manual trading and recreate them. What does this mean for you? You don’t have to spend weeks or months learning complex trading methods. You can just download an automated system and let it tell you when to trade. That’s it. You can literally start trading in minutes.
Now that you are armed with this information, you need to make a decision. Pick the best currency trading strategies and start making money!