To trade currencies to private investors, was opened in the early 90's of the last century. Since then, for many, Forex, forex market remains unknown. Investors had engaged in trade in the stock market or sell futures, begin to learn new terms for themselves and market characteristics. But the reality is that forex trading, trade is no more difficult in other financial markets of the world, sometimes in some areas even easier. Modern Forex trader analyzes events of the eight leading economies in the world, based on these data bases its trade.
To help participants in the foreign exchange market comes technical analysis. Through him, studied price movements in the past. On the basis of these data are compiled forecasts of future market price movements. Since Forex is open around the clock, get a large sample of data, which helps to make a more robust graphical information. Some forex traders trading currency on the market rely solely on technical analysis data.
Types of trading clients
No matter which market trader likes to trade: the foreign exchange, stock and futures. Typically, any trader belongs to one of two types.
The first type: the trader sells the trend. Call them trend traders, the essence of their trade is in the open position in the direction of the trend movement of the asset.
The second type: the trader trades in a range. These traders usually work with vertices and donyami. While both tactics are quite successful, but more and more popular among the participants remains Forex trend trading. Especially among hedge funds and professional traders with years of experience. Reason for the popularity of the trend of trade in its duration. Trends in the Forex market can last, not just a few weeks, and even months and years.
Theoretically, trend trading is very simple. Open position at the break up, and watch the growth of profits, or do similar in the breakdown down. However, the practice shows the opposite, only in retrospect trends seem clear. The reality is, the trend observed for weeks or months at the most unexpected moment can start depleted. The probability of this is very high. Therefore, it is important for traders to always have on hand tools to help identify early signs of completion trend.