Get to know Forex Trading and the complete Price Action Strategy
What is Forex Trading? This question is generally widely asked by those who are layman in doing one of these popular online businesses. Indeed to be able to run a trading business at least you know in advance what is forex trading, how it works, profits, strategies carried out one of which is price action in full.
Generally before doing techniques or tricks on forex trading, the first thing you should know is Forex Exchange or forex. We also know him by another name in The Indonesian language, namely Foreign Exchange. In other words forex is trading foreign currencies from various countries.
By knowing about understanding or definitions, tutorials, tips and tricks to do the business of forex trading, will further help you understand what exactly forex trading is. Although reported to make a lot of money, knowing more about the advantages and disadvantages is worth it. For more information about forex trading, let's take a look at the description as follows.
UNDERSTANDING FOREX TRADING
In his understanding, Forex trading is trading and buying and selling foreign money. For example, you can buy currencies from Japan or JYP as well as at the same time you sell European country currencies called Euros. This activity is called by the abbreviation JPY / Euro. In short, forex trading is a technique carried out to benefit from the rise and fall of the currency exchange rate.
However, it is important that you know that this type of trading does not occur somewhere physical or a market that exists in the real world. Instead forex trading is done in cyberspace using online platforms as well as trading applications. Some people do not know this well because of the lack of information received.
FOREX TRADING MARKET
As we have discussed in the understanding section of forex trading, the forex market is trading currencies. Did you know, this industry can be a container that does money turnover in excess of 4 trillion at once per day and is very liquid. In addition, the forex market is open nonstop full 24 hours for 5 days.
However, because there is a time difference in different countries, the trade activities are carried out at four different times. When trading forex can be done anytime and anywhere even just by relying on a small capital.
HOW TO TRADE FOREX
Maybe you already have wishful thinking has a great advantage of doing forex trading. But, before that you should know more clearly in advance what language is used by forex trading. Most importantly you need to know how to read candlesticks. If you already know, your habit is already 75% of the people who have traded.
In addition to knowing the language, ha, which is included in the tips for doing other trading is to know well the terms of important terms contained in it. Know resistance and support and read trends. There's actually a lot more you need to learn and it's still about the basics. This is also called the Price Action strategy.
This fundamental thing is actually the most important thing you know compared to various other indicators such as MACD, Bollinger Band and so on. Don't focus on anything else if it's basic, you don't understand it very well.
TERMS FOR TRADING FOREX
Let's learn some important terms in Forex Trading as follows:
- Bull/bullish : a term that means to buy or invest confidence that assets will increase
- Bear : Bear or Bearish is the opposite of bull or bullish in other words the price trust of an asset will decrease
- Long : Could mean to buy
- Short : Sell in the hope of being able to buy assets at a more affordable price
- Shadow : The line found on the candlestick chart indicates the share price has moved relatively from the opening and closing times.
- Real body : The area on the candlestick chart indicating the closing price on the stock is high or even lower than the opening price.
- Candlestick : Shape in the form of a rectangle seen or Real Body. Some have a towering line or vice versa.
- Leverage : The act of borrowing money
- Margin : The process of depositing against the broker to open and maintain the position of one or more currencies.
- Bid : Price of forex traders who are willing to sell currency pairs
- Ask : Price of forex trader who will buy a currency pair
- Spread : Trade from selling price and purchase price
- Pop : A company that provides retail brokers with access from big banks to liquidity trading
- Lot : In forex trading, Lot is equivalent to 100,000 units of base currency. Standard lots are similar to trading sizes.
Considering doing forex trading is not without risks, but it can make you suffer losses, then always make a good plan. Pay attention to tips and tricks to stay safe and do not trade without a powerful strategy and right for you to succeed. Always be careful and hopefully useful.
