STAGE IV – WHAT
When we talk about what to trade for in Forex, the first thing
that comes into our minds is the Currency. But there are a few
other elements too which make up for a complete trading plan such
as the currency pair also known as the trading medium, the market
actions that generate the market entry and exit points, and the
overall attitude towards trade management.
Forex is a trading market which gives its traders, returns in the
form of the comparative value price of one currency exchanged by
the other. Always dealt in currency a pair, Forex has its major
currency pairs like namely Euro/US Dollar or (EUR/USD) and US
Dollar/Japanese Yen or (USD/JPY).
With this simultaneous buying and selling of exchange an investor
hopes to make winnings on positive exchange rate oscillations.
There is a constant fluctuating going on, down as well as up,
within seconds with the exchange rates. This is where the whole
art of trading lies, in flawlessly predicting the movement of the
variation between the two currencies.
Creating a comprehensive trading plan and correctly comprehending
and including all its major elements into it are a must for an
unbeaten trading approach.
All of these elements combine together to form a strong trading
A trading deal with a currency with tight spread alongside using
mid or long intervals as entry signals as well as a low leverage
always has an enhanced probability for being a hit.
On the other hand, a trading deal with a currency with loose
spread alongside using short interval as entry signals as well as
high leverage positions will almost certainly serve as a big fall
And finally, the currency pair, the entry and exit signals, and
the trade management method should all merge well simultaneously
and be present without disagreements and overlapping.
Beginners or new traders create grave errors at times, by trying
hard to fuse collectively all the methods or strategies they have
heard about or gained knowledge about from miscellaneous sources.
What should be done instead is to put in your own effort and
analytically construct, analyze, and set up a complete trading
plan which perfectly matches your trading approach.
The refined, professional and experienced investor always goes in
for this extra bit of hard work, just to function with a
harmonizing trading plan which will help him produce steady