{"id":80,"date":"2017-11-17T15:05:11","date_gmt":"2017-11-17T15:05:11","guid":{"rendered":"https:\/\/skyeconomynews.com\/?p=80"},"modified":"2017-12-15T16:01:09","modified_gmt":"2017-12-15T16:01:09","slug":"mastering-the-foreign-exchange-markets-part-3","status":"publish","type":"post","link":"https:\/\/skyeconomynews.com\/mastering-the-foreign-exchange-markets-part-3\/","title":{"rendered":"Mastering the Foreign Exchange Markets \u2013 Part 3"},"content":{"rendered":"

This article is going to cover the most important aspect of Forex \u2013 the actual trading. If in the last parts we talked more about theories, and how to register with a good brokerage, today we\u2019re going to dive right into how to be a successful trader.<\/p>\n

Without further introductions, let\u2019s get at it!<\/p>\n

Analyzing the markets<\/strong><\/p>\n

    \n
  1. Technical analysis: This type of analysis involves reviewing the data and the historical sequences of each currency, to get a good idea of its path, and predict how it will move based on past events. You can usually get plenty of graphs from your broker, or using a popular platform such as the MT4.<\/li>\n
  2. Basic analysis: Here you need to look at the country\u2019s economic statistics, and use this information to help you make trading decisions. The financial position of a country will always impact its currency, so make sure to keep an eye on current and upcoming events regarding economic news.<\/li>\n
  3. \u201cEmotional\u201d analysis: This is a very subjective analysis method. You should basically try to analyze the \u201cmood\u201d of the market, to see if it\u2019s \u201cbearish\u201d or \u201cbullish\u201d. While you cannot always put your finger on the current state of the market, you can often do a good expectation that can lead to good trads.<\/li>\n<\/ol>\n

    Determining the price margins<\/strong><\/p>\n

    Depending on the policies your broker uses, with margins, you can invest a small amount of money and generate lots of profits, provided you know what you\u2019re doing.<\/p>\n

    For example, in some cases, if you want to trade 100,000 units on the margin of 1%, your broker will require you to deposit 1000 units from your own money in your account. This will give you access to trade with the whole 100,000, and your earnings and losses will either be added or deducted from your balance. For this reason, it\u2019s recommended to diversify your portfolio and invest in multiple currency pairs, in case one of them fails.<\/p>\n

    Placing orders<\/strong><\/p>\n

    Orders are a great tool to automate your tradings, so you won\u2019t need to spend a lot of time next to your computer. If you set them cautiously, not only they can earn you good profits, but they can also prevent big losses should you ever encounter them.<\/p>\n

    You can place various orders, the most important being:<\/p>\n