Some of these replies are ridiculous, Forex is just another trading instrument, it has its own peculiarities but then so does AAPL or ES. It's basically unregulated and the institutions control the market, but if you work out how they play then it gets easier. Prefer currency futures as well, but spot is interesting in some areas as a secondary approach. As with all trading instruments, there are a million ways to process the data and come up with trade decisions, it's about finding the one that works for your combination, and that means testing them all. No idea where the OP is coming from, they ask a question, they get replies and then side with one party when they say they have no clue how it works. If they hadn't been so stupid would have explained a fast track method, but there's no point in helping people who can't help themselves.
You trade forex like you trade anything else. If you really understand markets, you can trade without knowing the name of the market.
I object to that. I only came here to find reason behind long term edge and what forex really means to people. To me, it is a market that isn't worth s*it because spot in the US is almost untradeable. 50:1 leverage, really? Take that min account balance elsewhere and trade in cash. It's rigged. However, long term edge wise, I feel like Forex is a 50/50 shot and there is no real way to exploit edge long term in the market over years and years of trading. For those who do, they are personally self disciplined and can handle days of loss but still churn up profit in their overall months end. Stocks and options seem more of the play for someone who wants to exploit long term edge because there can be a dozen >$5 companies that trade intra day for cents or dollars to an amount that can give you a return like 50:1 US FX, and still have upside with the downside being low. Very low relative to your cash position. Everything seems more relative in Stocks than Forex, but again, I am sure some of you will disagree with me and say Forex is the end all because of its leverage... too bad the house really is against you and you might not even get your money back if you do decide to f with one of those bucket shop brokers.
I dont trade spot forex but it I did I would trade medium to long term horizons using fundamentals, economic data and statistical analysis.
All dumb monkeys put losing forex trades , as a long term investment which does not appreciate , they buy an hold for years If you had a pain in your ass , how log before getting rid of it?minutes ar years ? Can you wait years?
Xela, I am a little bit surprised that you only talk about volume for trading even though you've done academic research...because it sounds like you haven't really applied what you've found from your research to your trading ...or perhaps your research wasn't related to derivative or stock market.
Self discipline and risk management complement your system but on the top of them, one needs to FIRST know when THEY ("the dominant trend") are coming. And without academic research experience, the life in Forex will be very difficult.
Think of the human mind and how it enjoys , the discomfort of losing , frustration of losing , the anxiety , stress , emotions and self respect. Insanity is repeating it over and over
Look for her - the dominant trend , that's the only thing I look for . Since you want the answer at beginners' level, look for and study head and shoulder pattern/double bottom(or top). But still, ... You better quit real trading because without a proven system, you will waste your time and money. And if your motivation is coming from gambling habit, better stop it now. It is said trend is your best friend but without knowing when dominant trend is coming, you have no chance. To become a specialist so called speculator, you have to either do Phd in finance or carry out research and educate yourself.