How can forex trading beginners grasp the following 6 market conditions?

[JRFX Forex player]

With the fluctuations in the foreign exchange market, many traders want to master the trading skills of various market conditions. Below I will share the trading tips revealed by a foreign exchange trader, who grasped the key to successful trading through the following six market conditions.

01 Data News Market Trading
When facing the drastic fluctuations in the market caused by the release of major data or news events, pending order trading is a simple and effective strategy. This method can help traders to have a single order to be traded no matter which direction the market goes after the data or news event is released, and the probability of profit is extremely high. However, it is also necessary to pay attention to the violent shock trend that may trigger the stop loss.

02 Divergence Trading
Divergence trading is an early warning signal that can be used as an indication of the timing of a trend turn. Traders need to note that divergence is only a signal, not a sufficient condition for opening a position, and should be combined with other indicators and patterns for verification and signal filtering.

03 How to deal with emergencies?
Emergencies are inevitable in foreign exchange trading, but traders should remain calm, observe market reactions, and act cautiously. For major emergencies that can change the mid-term trend, it is even more necessary to trace the source and understand its significance in order to judge the future trend.

04 Carry trading
Carry trading uses the difference in base interest rates of different currencies to obtain risk-free returns. By choosing currency pairs with large interest differences and obvious trends, traders can gain profits from interest rate differentials and exchange rate changes.

05 Short-term trading
The foreign exchange market is suitable for short-term traders, but they need to keep a clear head and follow the trend to make orders, while avoiding blind trading and counter-trend operations.

06 Range trading
Range traders buy at support and sell at resistance, repeating this procedure until the exchange rate breaks through the range. This strategy requires a certain profit margin, multiple highs and lows to confirm, and decisively exit when the exchange rate effectively breaks through the range again.

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[Polakandil]

If traders are still really beginners, it is recommended to practice trading skills using a free demo account provided by almost all forex brokers. Some suggest practicing the demo for at least 6 months and measuring trading performance. This is because many traders fail before 6 months. However, demo practice must really train trading skills and not just buy and sell without a clear reason.

 

[borzy]

If traders are still really beginners, it is recommended to practice trading skills using a free demo account provided by almost all forex brokers. Some suggest practicing the demo for at least 6 months and measuring trading performance. This is because many traders fail before 6 months. However, demo practice must really train trading skills and not just buy and sell without a clear reason.

I would also add that you have to work out cancellation scenario, i.e. price levels or circumstances where you admit you were wrong on your prediction. This is not quite obvious because we tend to pay attention only to entries and close position using predetermined targets, however incoming information can play against you or vice versa extend potential profit.

 

[Polakandil]

Yes, the market is indeed very dynamic, when using scenarios such as risk reward ratio with predetermined stop loss and target, perhaps fluctuating market dynamics cause traders to miss out on the best exit point before reaching the predetermined target. Traders may be able to change exit point strategies based on this information while in front of the screen. However, predetermined targets and stop losses can be useful when the trader is not in front of the screen.