As a beginner, you need to start off your career in the forex market by being solidly prepared. Knowledge is the key to unlocking any successful career, especially if such a career involves associated market risks that go back and forth unpredictably like a pendulum. Knowledge you should attempt to learn must obviously relate to how currencies are traded and priced, how market trends are noted and taken advantage of, technical analysis and other fundamentals that will minimize the risk of loss. Doing a lot of research takes you farther than you think. But do not try to jump into the river before you can swim. That means you should start small and do not delve into the complicated aspects of trading before mastering core concepts.
Expert analysis is the art of prediction based on historic trends and events that shaped the past. In other words, you must be acquainted with the currency market as if it were the back of your hand. The best known way to analyze these trends is to read periodicals from a few years ago as well as going through books written by leading players in the foreign currency market. Constructing graphs of price fluctuations and interpreting such graphs is another way of making sure that you stay in touch with what is happening and what could possibly happen. With that done you can then get into the deeper aspects of analysis and successful prediction.
Believe it or not, starting and closing prices do not just occur. The reality is that certain events – whether they are political, economic or social – determine price fluctuations. Therefore, try as much as possible to stay up-to-date with political, economic and social events around the world as it is these seemingly useless occurrences that shape the reality you see right before you in your charts and tables.
For example, a product recall – when a product is removed from the market by a manufacturer citing defects – is a good indication that the currency of that particular country will suffer markedly. The same applies for political events around the world. For example, a change of government can result in a new economic policy that might not support profiteering to a point where such an economy will suffer.
There is nothing like a good forex trading strategy. There are so many unpredictable risks in the currency market that you can never rely on a single forex trading strategy to be successful.
Day trading is a safe haven for beginners. As mentioned earlier, the foreign currency world is riddled with risks and is largely unpredictable. Never try to hold your position for too long as this could reverse your luck. As a beginner trying to learn the best forex trading strategy, you will be better served when making several small profits than losing out on a huge trade all at once.