Do you know the market is speaking to you? Can you understand the language of the market? If so, you are a professional trader. The professional traders know the perfect way to decipher the language of the currency pairs. They never trade this market with emotions rather they use rational logic and different parameters to find the best trades. The new traders must be wondering how to understand the language of the market. But this is nothing to worry. We will give you a clear guideline.
The market is always fluctuating depending on the global economic factors. The leading economist always predicts the price movement of the financial instrument by assessing the technical and fundamental data. Being a new trader you need to learn this two things to understand the language of the market. Its true things will be extremely difficult but with hard work devotion, you can become a profitable trader within a very short period of time.
Learn candlestick pattern trading
The price movement of the financial instrument can be viewed in different chart type. But do you know candlestick chart is the most used by the professional traders? Every candle has a story tell. You need to understand the psychological reason behind the formations of each candle. For instance, let’s talk about the bullish pin bar. This type of candle has a very small body and a long tail. Usually, you find this pattern at the bottom of a downtrend. The long tail in the downward directions suggests the sellers had tried their best to drive the price down but eventually the buyers manage to take control. But you should not execute long trade just after the bullish pin bar is formed. Wait for a bullish candle to close above the high of the pin bar to execute long orders.
We all know fundamental factors are the major price driving catalyst in the Forex market. Being a new trader you might ignore the fundamental factors. But the leading analysis of Rakuten broker always suggests mastering the art of fundamental analysis since it allows the traders to assess the strength of the market trend. Being new to the retail industry, learning the basic concepts of the global economy will be a little bit hard. But things are really easy for those who really want to become a successful trader. You have to focus on the major scheduled news. For instance, during the FOMC meeting minutes, the market becomes extremely volatile. Usually, the leading FED officials announce rate hike decision in such meetings. So if you fail to understand the statement of the leading officials’ chances is very high you will lose a significant portion of money in news trading. As a new investor, you need to stay on the sideline during such news release.
Read a lot
Knowledge is power when it comes to Forex trading business. You have to read a lot to learn more about the market. If you can truly master the three major type of market analysis, you can easily develop a balanced trading strategy using the demo accounts. The new traders often ignore the importance of trend trading strategy. But there is saying, the trend is your friend. So if you counter trade the market trend, chances are very high you will lose money. You have to read a lot to understand the language of the market. Keep yourself tuned with the latest economic information. If you can develop a strong reading habit you will be always synchronized with the latest market change. Join the professional trading network since you will be able to learn a lot more from the experienced traders. Share your ideas and see how the expert traders are dealing with the market. There is no ending to your learning. It’s a continuous process which you need to embrace as a full-time trader.