EPISODE -1
If you not even read out the previous episode i just adding the url click and read it in continuous manner. Otherwise you won’t get to know what it’s happening in forex and global market.
https://vktradersblog.blogspot.com/2020/08/origin-concept-of-forex.html - Origin and concept of forex (1),
https://vktradersblog.blogspot.com/2020/09/origin-and-concept-of-forex-2.html - Origin and concept of forex (2).
EPISODE -3
WHAT TO DO AT THE TIME OF STARTING THE TRADING:
Before that need to understand the difference between stock trading and forex trading?
Stocks:
It is like buying/selling company stocks. (i.e.,)
for example,
If I am running a company since 2015. And you are a person of a stock trader. If you bought some shares from the company and selling it when shares profit got higher.
FOREX:
These term of trading is used like an analysing & predicting.
for example,
The current rate of the gold price is ₹40,000 (INR). and 0.3 ounces. If you opened an order as buy(Bid) and predicting it the price will go as uptrends within a stimulated time.
And sold out when the price hits the value of what you determined.
Forex has three major strategies,
- Scalping trade,
- Swing trade,
- Position trade.
SCALPING TRADE:
It is applicable to make a profit by buying/selling at a short period with a small profit.
A time frame used for scalping is -- 1 minute (1M) to 30 Minutes(30M).
When you dealing with the scalping method the possibilities of P&L (Profit and loss) has an equal percentage (50-50%) chances.
HOW PIPS IS CALCULATED IN SCALPING:
A scalper will try to make 5 to 10 pips of each trade. But when the pair us got volatile the risk will be higher compared to other strategies.
In forex or stock trading the "Spread" is defined to the buy (bid) and sell (ask) value price of currency pair.
For example,
If you Bid a value @1.1700 ;
Ask value @ 1.1710
then the spread value would be 1 pip.
Forex traders make a profit based on the movement of currency pair. Trades become profitable only at the time of the value crossed the spread value where we opened an order.
Scalping will be done at the time interval between 1 minute and 15 minutes respectively.
scalping will be held only in the short interval or short term period. In which we would place much order within a short period.
But most of the time if you like to trade with scalping technique I suggest you use the low spread currency pair instead of using high spread pairs.
Then if you thought out what about the high spread value!
I would tell it you can deal with both the spreads but if you have taken high spread pair instead of low spread value. Then your profit might be very less.
yeah!
Rather than using the high spread value, you won't make enough profit within the short term of scalping.
LOW SPREAD SCALPING TECHNIQUE:
and forex currency pair 25 long or short within a minute.
If you making the order above the 30 minutes time frame then that might be move on too other technique.
Pros:
- If you need high-level profit then you must deal with positional trades.
- Should not wait to make a strong divergence movement of the market.
- don't make any pressurised think to analyse every market strategy.
CON's:
- don't make it or open too many trades at a time.
- Too many good trades lead to overconfidence.
- There is a risk of over-trading.
SWING TECHNIQUES:
Occurs in between the day trading and long term trading. It will handle for a few days to a few weeks.
Time frame will be, as a multi-week scheduled. They generally deal with fours (H4) and daily (D1) charts.
Before checking it you need to check the fundamentals and technical analysis of the market.
SCALPING:
- Maintain the time
- The action needs to be taken.
- Must check the economic news every time before getting into trading.
SWING TRADE:
- Only preferred time to be maintained.
- No need to take any action against the currency pair.
- Check the economic news every time but it won't need to apply in the trading strategy.
POSITION TRADE:
- Time
- Action
- News
APART FROM THIS MAKE A RELAXATION OF YOURSELF.
