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Foreign Exchange Market

Day trading in the foreign exchange market is great for new investors looking to make money day trading. The forex market, also referred to as the foreign currency exchange, and FX, is highly liquid and can be traded 24 hours per day. Many investors find it is great way to make money, rather than day trading stocks.

Forex traders use technical analysis when buying and selling foreign currencies daily. They learn about technical indicators based on technical analyses, such as moving averages, and they learn how to read stock charts. There are numerous charting tools and indicators available to help with their trading. Of course, a good forex trading education is necessary before you begin to day trade in the foreign exchange market. 

Forex day traders also need to determine which forex trading system they will use. They can use a manual or automated trading system, depending on what they prefer. It is very important that each system is researched thoroughly, however before committing to one. Many companies, if not all, provide demos of their forex software. This way you can practice with it and determine if you like it or not. Additionally, some demos provide stock charts and real time quotes in order to help new investors practice before they begin trading with real money.

New forex traders should also take a forex currency trading course in order to learn about the currency market as well as the many different forex trading strategies that are available. You will also need to learn about and become familiar with all of the different foreign currencies. You will also need to understand the concept of currency pairs and know that you can only buy currency in pairs when day trading the foreign exchange market. Through taking a forex trading course, you will broaden your understanding of the currency market and how to trade forex. While it is highly liquid and a great way to make money trading, forex trading is still just as risky, especially if you are looking to practice day trading forex.

Once you have received the education necessary to successfully trade forex, you will need to determine how much money you are willing to risk and you need to develop a trading plan. Your trading plan should be followed strictly and you must document things such as your entry and exit strategies as well as any stop loss strategies that you implement into your plan.

Market Direction:  The talking heads are still advocating selling into this rally. As long as that type of rhetoric continues, the uptrend will continue. The market will tell us what the market is doing, the opinion of each individual means nothing. It is the accumulative decision-making of everybody participating in the markets that is the most reliable factor for projecting market direction. The candlestick signals have made the analysis of this trend very easy. There has not been a confirmed sell signal over the past few months. Both the Dow and the NASDAQ have consistently used the T. line as their support.


Whereas the buying late yesterday put the indexes back into the indecisive trading range, the late afternoon selling today did the same thing. The sideways movement of this market creates a major benefit to the candlestick investor. Having the ability to identify the strong sectors/stocks, allows for participating in profitable  price moves even  when the market is not helping. This past week, there were very strong signals in the solar energy area. They have produced extremely good profits over the past five trading weeks while the market has produced flat trading.



The major benefit of candlestick analysis is the accurate reading of when a potentially strong trend will start. This allows for a number of profitable strategies to be put in place. This weekend the Candlestick Forum will be presenting a two day Option Strategy with Candlesticks training. This training will concentrate on using the appropriate option strategies applied to specific pattern moves. Analyzing price trends with candlestick signals is very easy when you keep everything simple. The same concept works extremely well with option trading and candlesticks. The strategies demonstrated will be for the investors that want simple and easy-to-understand profitable trade strategies. The training will start with the absolute basics of option terminology. Each trade analysis will apply very simple trade structures. This course is directed toward the investor that does not want to spend two hours every night trying to figure out the best option strategy. Click here for more details.

Option Trading with Candlesticks June 13 and 14th - Sign up now

Chat session tonight 8 pm Et - Come join us. Click here for instructions.

Good investing,

The Candlestick Forum Team




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