Most novice forex traders use a trading strategy, which is called "intraday", which translated to English means "within days." This strategy is that when the price of currency in the market virtually immobile, then during the day you can still note minor variations in time and if able to navigate and open for sale, and then to buy, you can get a good profit even in the absence of clearly pronounced trend.
But sometimes the situation turns in the opposite direction. For example, a beginning trader is any position and expects that the price will go in the direction that he wanted, but he is beginning to schedule a completely opposite direction, and at once a hundred points, which means that all of the trader to gain by selling For several days, disappears without a trace.
Moreover, such an error can make any novice trader. The main thing for any man who decided to do the forex trading is to remember that the success of its trade does not depend on how often it commits the transaction. Accordingly, we can conclude that it is better to make a really good deal once in a year than to make ten failures in one day. This proves once again that in the Forex market have a distinct advantage long-term positions.
Here is an example for illustrative purposes. In late 2009, the ratio of the euro against the dollar was 1.51, and in June 2010 rate was much lower, only 1.19. This means that if any trader in December 2009, took a position on the sale of euro 0.1 lots with the leverage 1:100 while spending only $ 151, in June of the following year his income would have been $ 3,200. This means that the transaction would have brought him an income of more than twenty times the investment. And imagine that he would not have invested $ 151, and ten times more. Then six months of his income could amount to 32 000, and this is quite a good income, given the fact that there was only one perfect deal for six months. But the foreign exchange market, there are people who would certainly have objected to hear our arguments. For example, proponents of trade channels "intraday", would tell us that after six months you can earn several times more. In principle, they are right. You can earn, but you can lose a few times, because of the six months, the price dropped unevenly, there were those times when the price goes up in a few weeks. In such conditions it is very difficult to work with, because it is a huge risk. There have been cases when such corrections, which are directed against the main trend of traders lose all their deposits, because suddenly trend resumed its movement.
Every time a trader is his position, he loses a certain amount of money, because I have to pay Spread your broker in the amount of a certain amount. Normally this spread is between 2 and 5 points. A lot or a little, it is very difficult to judge. Because, if a trader is long-term position, for him this spread is quite insignificant sum. But if the trader was used to make a swing of ten points is already very substantial sum. If we take into account all the above, we can conclude that we should not focus their attention on the intra-day trade and lose with a significant amount in the form of spread broker. After all, the long term trend is a great opportunity sometimes good earnings, you may not notice. Generally, beginners are best to focus on the long-term trade, because it is more secure. All that is needed is for the novice trader is able to determine the long-term trend, and make it not difficult. It will be enough just to build a 65 day moving average, which was later able to show long-term trend trader, which exists today.
But sometimes the situation turns in the opposite direction. For example, a beginning trader is any position and expects that the price will go in the direction that he wanted, but he is beginning to schedule a completely opposite direction, and at once a hundred points, which means that all of the trader to gain by selling For several days, disappears without a trace.
Moreover, such an error can make any novice trader. The main thing for any man who decided to do the forex trading is to remember that the success of its trade does not depend on how often it commits the transaction. Accordingly, we can conclude that it is better to make a really good deal once in a year than to make ten failures in one day. This proves once again that in the Forex market have a distinct advantage long-term positions.
Here is an example for illustrative purposes. In late 2009, the ratio of the euro against the dollar was 1.51, and in June 2010 rate was much lower, only 1.19. This means that if any trader in December 2009, took a position on the sale of euro 0.1 lots with the leverage 1:100 while spending only $ 151, in June of the following year his income would have been $ 3,200. This means that the transaction would have brought him an income of more than twenty times the investment. And imagine that he would not have invested $ 151, and ten times more. Then six months of his income could amount to 32 000, and this is quite a good income, given the fact that there was only one perfect deal for six months. But the foreign exchange market, there are people who would certainly have objected to hear our arguments. For example, proponents of trade channels "intraday", would tell us that after six months you can earn several times more. In principle, they are right. You can earn, but you can lose a few times, because of the six months, the price dropped unevenly, there were those times when the price goes up in a few weeks. In such conditions it is very difficult to work with, because it is a huge risk. There have been cases when such corrections, which are directed against the main trend of traders lose all their deposits, because suddenly trend resumed its movement.
Every time a trader is his position, he loses a certain amount of money, because I have to pay Spread your broker in the amount of a certain amount. Normally this spread is between 2 and 5 points. A lot or a little, it is very difficult to judge. Because, if a trader is long-term position, for him this spread is quite insignificant sum. But if the trader was used to make a swing of ten points is already very substantial sum. If we take into account all the above, we can conclude that we should not focus their attention on the intra-day trade and lose with a significant amount in the form of spread broker. After all, the long term trend is a great opportunity sometimes good earnings, you may not notice. Generally, beginners are best to focus on the long-term trade, because it is more secure. All that is needed is for the novice trader is able to determine the long-term trend, and make it not difficult. It will be enough just to build a 65 day moving average, which was later able to show long-term trend trader, which exists today.