How To Trade Currency Like A Pro
January 12, 2009 by Kelvin
Filed under Forex Tips
It is possible for anyone to make a living with forex trading but it is important for all forex traders to be well educated in this area of forex trading. I often met friends who asked me how to trade currency for a living and my answer to them is to get proper training from good mentors.
There are a lot of people who claimed to be able to teach you how to trade currency with 80% accuracy but only a few of them can actually do that themselves. Therefore it is important for you to be able to find a reliable mentor that can guide you the correct way to forex trading.
I have attended some forex courses that are useless for my point of view. However, I have found several good forex trading course when I asked some experienced forex traders for recommendation. I have benefited a lot from those courses as they taught me the techniques to trade forex like a pro.
Tips on how to trade forex like a pro
1) You need to understand the basis of several useful indicators like Moving Average, Stochastic and MACD
2) You need to know how to read candle reversal pattern
3) You need to understand how to draw correct trend line
4) You need to know how to calculate pivot point
5) You need to be able to read COT report
6) You need to be able to relate all the above 5 factors together to get a trade
When I am new to forex trading, I often place my trade based on one indicator or one candle pattern and get myself into serious loss. After I learn how to trade currency like a pro from my forex mentor, he taught me that I need to be able to identify confluence of events to execute any trade successfully.
Example of a confluence of events is
- Reversal candle pattern at a major support price
- Follow by a trendline break
- MACD divergence
Using this technique of confluence of events, I am now able to trade at least 70% of the time and I am making a good living with forex trading today.
Therefore it is very important for you to be able to learn how to trade currency like a pro.
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