The second thing to note before taking a forex trade

[amakaokafor]

The second thing to note before taking a forex trade is the market structure,when I say market structure I mean the resistance level ,demand level,double top,double bottom,head and shoulder etc after you have confirmed that you are in a buying market(uptrend)since you only buy in a buying market,you have to wait for the market to retrace before you think of buying,if the market has retraced to the former resistance level and has formed one or two candles upward,then you might think of buying,same as in a selling market.

 

[Brightwarmer]

Forex trading is a tricky form of investment. You need to understand every aspect of it before jumping on the train.

 

[Deleted member 28127]

Every subtitle from what you mentionned needs perhaps 1 month of explication as resistance level or demand level because for each forex action there is many parameters to study before processing a forex action and then to entertain yourself on a demo forex game before pass to real money investing so it needs a long paragraph for explicate any of these terms.

 

[Sotherefore]

When I use to trade cryptocurrency then I always make sure I always buy it at the support level and also to set a stop loss below the support so that if its drops back I won't be in a great loss.. even with this most of the trade I entered on My own were all unsuccessful because of poor analysation.. support and resistance is not the only thing to look for when you are interested to trade cryptocurrency or forex, but you should also look into the deeper meaning of what the chat is all about and that is the most important thing.

 

[Victorial]

You do not place a trade just because the market is in support or resistance level. These levels are important but they are not the only confirmation needed. Support level suggests a strong buy signal but you have to use other indicators to confirm. I am a candlestick trader and I know and understand some reversal patterns. When I see one I do confirm it with my relative strength index and make sure the levels are supported

 

[Kingstone]

I admire your points. Drawing support and resistance level can be difficult for beginners. It took me more than a month to learn how to draw them. I had to watch lots of videos and read books online. Still, I suffered a lot. I used to force these lines if I do not see them and I realized that the market will not respect them at all. All trades that I placed with those lines got me losses. I was glad I was running the demo account.

 

[JoeSeki]

Support and resistance levels are easy and effective ways to enter or exit positions. When the downtrend is expected to pause due to excessive selling, it’s a great opportunity to buy and vice-versa. I use trendlines and moving averages to identify these levels.

 

[ojo2021]

You must know that trading has 50-50 chance of success rate. You can lose your hard earn money or gain. So, you must only invest the amount of money you can lose into trading. In most cases, a lot of people do lose their money. Forex trading is not for those that give up easily.

 

[tetramorium]

Different time frames can show different trends on the same currency pairs. When using support and resistance levels to identify entry and exit points, it’s better to multi-timeframe analysis on weekly, daily and short-term timeframes to identify long-term and short-term support and resistance levels.

 

[eldavis]

That's right, when it comes to forex trading, it's not something you just wake up in the morning and then rush to the market. It requires lots of planning and research before going in. This thing happened to me some time back I just enter the market and made my predictions and placed a trading according to my predictions. It went my way for only a few seconds the next I know I was in deep loss, that was when I discovered the article that warn traders to buy at that moment cause it would be in deep sell. If I had made the right research before trading I would not have made that mistake.

 

[Zonked]

It’s not always easy to identify the exact turning points while looking for support and resistance levels. I usually make my decision when a trend starts repeating itself. I buy when the uptrend is in its initial phase and sell when the downtrend has just started.

 

[Sotherefore]

Yes it is absolutely necessary that we observe it because it is very important to determine where to place our stop loss and where to place a buy order, this information is incomplete and advise people to go into the advanced learning strategy of support and resistance because that is how we can be able to get advanced knowledge of how to use the support and resistance level perfectly, this can help a trader to reduce the risk of losing, I do not trade Forex but when trading cryptocurrency I always observe the support and resistance because it is absolutely necessary even expert advised that we do so.

Apart from these things there are so many things we need to understand about trading of volatile market and all this thing's is something we need to learn if we have the natural interest to trade the volatile market , without understanding of all of those things it might not really be possible for us to make money in the volatile market..

At the same time with proper risk management the risks of losing of money in the volatile market may be reduced that is why we need to understand risk management together with support and resistance.

 

[Chlamys]

Ya it’s true that you can never be 100% right with the information you get from your support and resistance levels. But they can work to a great extent. I have been finding my entry and exit points through these and with experience, the results have improved for me.

 

[destinyrim]

If you are relying on support and resistance levels to make buying and selling decisions, it’s best to use trendlines. Trendlines give a visual about how the market is moving and how it can move in future. It will show you a point over or below which market is struggling to move.

 

[Ivo Zetticci]

Proper evaluation of choice is needed because it helps in further development. Primarily, rely on the analysis that is suitable for you, for example, analyzing with technical tools. But don’t completely rely on technical analysis. Those who are technical analyzer can make the best use of this opportunity. FXOpulence provides a smooth trading platform, narrow trading spread and fast execution of trades.

 

[6itrade]

The second thing to note before taking a forex trade is the market structure,when I say market structure I mean the resistance level ,demand level,double top,double bottom,head and shoulder etc after you have confirmed that you are in a buying market(uptrend)since you only buy in a buying market,you have to wait for the market to retrace before you think of buying,if the market has retraced to the former resistance level and has formed one or two candles upward,then you might think of buying,same as in a selling market.

Forex currency trading and indices trading are two of the most popular ways to trade in the financial markets. Both offer the potential for high returns, but they also have their own unique risks and rewards.