Some videos about charting and technical analysis...
Introduction to charting:
"Charting is a primary tool of use by the
forex trader. Combined with solid fundamental analysis, it give traders
insight into trade timing and potential profitability.
Reading
and analyzing charts is something that you get better at with time and
experience. But it's also easy to abuse, as it's a highly subjective
exercise that you must learn to adapt to your trading style. Be sure to
understand whether you're long- or short-term focused, and decide if
you're aggressive or more conservative, as those factors impact your use
of charting and technical analysis." Alpari UK
Introduction to technical analysis:
Price patterns:
"A chart for a currency pair will begin to form
predictable patterns during trends. A pattern usually forms when a pair
is in the process of changing: slowing down, reversing trend, etc. When
that happens, it's a signal to take a step back and evaluate what may
happen.
Proper understanding of price patterns on a chart will
help you better determine the probability of the currency pair
continuing the trend it was in, or reversing to develop a new trend.
This helps you determine whether to buy, sell or hold.
Price
patterns are an underutilized and extremely valuable tool in your forex
trading arsenal. It may take a little while to get comfortable dealing
with the subtle nuances and occasional ambiguity that are a part of
price pattern analysis, but once you get the basics figured out, you
will be able to confidently make informed trading decisions.
It's
also important to understand that price patterns are visual
representations of market psychology. They tell you when traders in the
market are excited and moving, when they need to take a moment and catch
their breath and regroup and when they are ready to get moving again.
All price patterns are made of the following four pieces:
Old trend: the trend that the currency pair is in as it starts to form the price pattern
Consolidation zone: a constrained area where the pair isn't clearly continuing the trend or forming a new one
Breakout point: the point which the currency pair breaks the consolidation zone
New trend: the trend the currency pair enters coming out of the consolidation zone" Alpari UK
Inherent risks of off exchange Forex Trading:
"There are a lot of great things about trading in the forex but there are
a few, easy to understand risks inherent in trading in the off-exchange
or "spot" forex market. While there is little that can be done to
eliminate these risks being forewarned is forearmed and can help you
manage expectations. The risks I am referring to typically fall into the
two categories listed below. Make sure you understand what these risks
mean before you make a trade in the forex.
1. Leveraged or "Geared" Products
Forex
is a leveraged product. This leverage or gearing allows you to control a
very large amount of currency with very little margin. This means that a
very small movement in the market may result in a large loss in your
account. Because forex trading is a leveraged product, it is possible to
lose more than you have invested.
2. Risk Reduction Strategies May Have Limited Effect
While
it is generally accepted to be a good practice to use stop losses, they
are not guaranteed. If market conditions prevent a stop loss or stop
limit order from being executed you could be liable for those additional
losses. In addition, because trading the forex is a leveraged product
you may lose more that your account balance and could be responsible for
those additional losses.
Action Items:
1. Read the Risk Warnings
Consider
these risks carefully and make sure that you understand them before you
start trading. Take the time to read the risk disclosures and warnings
provided by your dealer. Ask your dealer if you have questions about
what you have read.
2. Get Educated
There is no
satisfactory substitute for education. Make sure you have taken
advantage of all the educational resources available to you. There are
no shortcuts in this process and it will take some work and effort." Provided by Learning Marke
