The scheduled disclosure of economic reports, official statements and statistical data often act as catalysts for enhanced volatility facing the valuations of currencies. For active traders, being aware of industry expectations, actual data and the exact timing of the event itself are integral aspects to help manage risk and maximize potential opportunity.

Many forex traders start with a simple trading strategy. For example, they may notice that a specific currency pair tends to rebound from a particular support or resistance level. They may then decide to add other elements that improve the accuracy of these trading signals over time. For instance, they may require that the price rebound from a specific support level by a certain percentage or number of pips.
Strong trending markets work best for carry trades as the strategy involves a lengthier time horizon. Confirmation of the trend should be the first step prior to placing the trade (higher highs and higher lows and vice versa) – refer to Example 1 above. There are two aspects to a carry trade namely, exchange rate risk and interest rate risk. Accordingly, the best time to open the positions is at the start of a trend to capitalise fully on the exchange rate fluctuation. Regarding the interest rate component, this will remain the same regardless of the trend as the trader will still receive the interest rate differential if the first named currency has a higher interest rate against the second named currency e.g. AUD/JPY.
Disclaimer: Any Advice or information on this website is General Advice Only - It does not take into account your personal circumstances, please do not trade or invest based solely on this information. By Viewing any material or using the information within this site you agree that this is general education material and you will not hold any person or entity responsible for loss or damages resulting from the content or general advice provided here by Learn To Trade The Market Pty Ltd, it's employees, directors or fellow members. Futures, options, and spot currency trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell futures, spot forex, cfd's, options or other financial products. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.
High Risk Investment Warning: Trading FX/CFDs on margin carries a high level of risk, and may not be suitable for all investors. Leverage can work against you. Before deciding to trade FX/CFDs offered by FXCM Australia Pty. Limited ("FXCM AU" or "FXCM Australia") you should carefully consider your objectives, financial situation, needs, and level of experience. By trading, you could sustain a loss in excess of your deposited funds. Before trading FX/CFDs you should be aware of all the risks associated with trading FXCM products and read and consider the Financial Services Guide, Product Disclosure Statement, and Terms of Business issued by FXCM AU. FX/CFDs products are only suitable for those customers who fully understand the market risk. FXCM provides general advice that does not take into account your objectives, financial situation or needs. The content of this website must not be construed as personal advice. FXCM recommends you seek advice from a separate financial advisor. For any questions or to obtain a copy of any documents, contact FXCM at [email protected] FXCM AU is regulated by ASIC [AFSL 309763]. FXCM AU ACN: 121934432.
You can read more about technical indicators by checking out our education section or through the trading platforms we offer. The best forex trading strategies for beginners are the simple, well-established strategies that have worked for a huge list of successful forex traders already. Through trial and error you should be able to learn Forex trading strategies that best suit your own style. Go ahead and try out your strategies risk-free with our demo trading account.
Sometimes a market breaks out of a range, moving below the support or above the resistance to start a trend. How does this happen? When support breaks down and a market moves to new lows, buyers begin to hold off. This is because buyers are constantly noticing cheaper prices being established and want to wait for a bottom to be reached. At the same time, there will be traders who are selling in panic or simply being forced out of their positions.
Forex is always traded in pairs – for example AUD/USD. You speculate on whether the price of one country's currency will rise or fall against the currency of another country, and take a position accordingly. Looking at the AUD/USD currency pair, the first currency (AUD) is called the 'base currency' and the second currency (USD) is known as the 'counter currency'. 
Forex Factory is an online foreign exchange trading platform that connects traders and brokers. The brand also offers a lucid interface with lots of unique features for news-based trading. The platform is highly social and it connects its users through a private members’ forum where you can share your ideas and trades. Forex Factory features simple spread-charting with data sourced from multiple brokers all over the world. It offers trading in all major currency combinations.
To easily compare the forex strategies on the three criteria, we've laid them out in a bubble chart. On the vertical axis is ‘Risk-Reward Ratio’ with strategies at the top of the graph having higher reward for the risk taken on each trade. Position trading typically is the strategy with the highest risk reward ratio. On the horizontal axis is time investment that represents how much time is required to actively monitor the trades. The strategy that demands the most in terms of your time resource is scalp trading due to the high frequency of trades being placed on a regular basis.
The profit target is set at 50 pips, and the stop-loss order is placed anywhere between 5 and 10 pips above or below the 7am GMT candlestick, after its formation. This is implemented to manage risk. After these conditions are set, it is now up to the market to take over the rest. Day Trading and Scalping are both short-term trading strategies. However, remember that shorter term implies greater risk, so it is essential to ensure effective risk management.
This forex trading strategy takes advantage of the momentum of the market that is currently prevalent. Any market sentiment is a sum total of all the traders’ prevalent sentiments. This ultimately results in the forex market moving in a specific direction. Market sentiment is a very important aspect and traders should learn to read or feel the same in order to successfully trade currencies. Sometimes it is easy to understand the sentiment, but some other it may not be very obvious.
Some of these factors include political stability, interest rates, inflation, terms of trade, public debt and current account deficits. For example, in the case of interest rates, if rates are higher, lenders get a better return compared to those in a country with lower rates; therefore the higher rates attract foreign capital which causes the exchange rate to rise. This is one of the reasons forex traders may look to trade on interest rate announcements from central banks like the US Federal Reserve or the Bank of England.  

Why should you use Learn to Trade to learn Forex trading? That’s simple: we are a credible, well-established organisation that exists to educate people on Forex trading strategies. Our Forex trading training is second to none and will give you the foundation you need to achieve success in the high-opportunity world of currency trading. Every course is supported by our knowledgeable team of experts, who guide and support you throughout your learning experience. Not only that – you’ll get to take advantage of our live trading floor to get some hands-on experience. Getting a feel for what it’s like, while you have experienced traders around to help you, is a valuable opportunity that will help you get the confidence you need. Register now for your Forex trading tutorial and workshop!

For me i see, both trade might sense the same interm of finance because, the long term trade have a great deal of pips in profit as compared to the short term trades, so the one with short term trade will trade more to compesate the profit of the one with long term trade. But sometimes what matters is what you can see on the screen at time t, if it happens the short time has favour so you can take it and if its a long term trade you can also trade. But the major deal is about your time to trade as stated in this article.
You might want to focus on some type of data and ignore the rest: less noise means more efficiency. Click on the  button at the top of the economic calendar. You can type a keyword or select countries, dates range, event categories or impact levels. Then hit the “Apply” button. If you always need to see the same data when you come to our calendar, you can save your settings for the next visit! We said efficiency, right?
DailyFX provides traders with an easy to use and customizable real-time calendar that updates automatically during announcements. Keep track of significant events that traders care about. As soon as event data is released, the DailyFX calendar automatically updates to provide traders with instantaneous information that they can use to formulate their trading decisions.
Day trading - These are trades that are exited before the end of the day, as the name suggests. This removes the chance of being adversely affected by large moves overnight. Day trading strategies are usually the perfect forex trading strategies for beginners. Trades may last only a few hours, and price bars on charts might typically be set to one or two minutes. The 50-pips a day forex strategy is a good example of a day trading strategy.
This is an exceptionally good strategy and works across all timeframes and for all currency pairs. This trending strategy picks breakouts from a continuation so as to help traders trade the retests. Candlesticks, pivot points, support and resistance levels and round numbers can be used when employing this strategy. Off-chart indicators are not necessary.
HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.

Hi Rayner reading through, I come to realize without any doubt I am a swing trader, due to my full time a very demanding job which I would like to be knowledgeable and profitable with trading to catch a break. My question here is since I know what kind of trader I am and I like the trend following strategy, how can I create a trading plan that as I follow to the T, will give me an edge as u always say, in the market.
×