When you start trading in forex market, you must build first your Forex social trading strategy. It is important, particularly for beginner traders. The Forex social trading strategy is regarded as a plan that classifies how the trading will work. It includes recognizing the relevant ways the trader should use to know the currency pair trend. It also defines the managing of the money in the accounts. It is must to identify the time span. Each currency should be monitored in a specified time interval.
The time interval can be on the scale of hours, days, weeks, or months. When monitoring over a time interval of one minute, you should check the opening and closing value of the currency pair every one minute. The opening value is the value of the currency pair at the beginning of the time interval while the closing value is the value of the currency pair at the end of the time interval.
Which interval length is to chose depends on the trader and his external conditions. It also depends on the amount of money in his Forex social trading account. Many traders can be busy and cannot monitor the charts regularly. It makes the minute or the hour intervals difficult to use. Also, it depends on according to the trader that how frequently he/she will monitor the charts. The amount of money in your trading account is important while monitoring the currency pair interval value. The longer the interval time there will be more fluctuations in the currency pair and more losses. It means accounts with larger value must use large time intervals and vice versa. You should identify your analytical techniques in Forex social trading. The key to being successful in Forex is to predict the currency pair. If you can predict the currency pair, you will be able to earn money. There are two primary ways fundamental analysis and technical analysis. Fundamental analysis means to observe the economic news of the country and use that news to measure the economy.
For long-term trades that uses large time interval this way is best. Technical analysis uses the charts directly to forecast the trend of the currency pair. Every Forex social trading chart supplies you with information so you should read them carefully. In the analytical analysis, you will identify two or three tools from the forex social trading and add them to the chart. It will allow you to study the chart and know the currency pair trend. When using analytical tools, you must not use too many tools because that will make the analysis more complicated. Only two or three tools are enough.
You must plan carefully which method to use. Selecting the method is the most important step in the Forex trading. You can use fundamental or technical scheme, whichever is best suitable for you. Once the trader determined the Forex trading strategy, an important thing to do after making it is to follow it carefully and respect the rules and regulations of the Forex trading strategy.