Back to basics

[Tariq777]

Hi guys.I just want to share my basic understanding about supply and demand in economy and how i use it for Forex trading.Hope can share and learn from all of u as i learn from others.This is just beginning of price action understanding.If u want more can view RED n TRADE PRICE thread.

 

Back to basic

Perhaps you remember the two people whose names figure often mentioned in the discipline of economics and physical. The first was Adam Smith, the pioneer of modern economics and a pioneer of economic system of capitalism. He has stated hundreds of years ago that if supply exceeds demand at a certain price level, prices will fall, and vice versa. While the second is Sir Isaac Newton's law of motion states that an object will remain in action motion (motion) to obtain reaction force (force) is equal to or greater. More often called the Action and Reaction only. Both examples are simple but wise of all time-tested and directly was a major factor in price movements in the market that we are trading and engaging in it at this time. The focus of this paper is on what is called the conventional technical analysis as a support (demand) and resistance (supply). We will examine more in what support and resistance are, how we identify and quantification on the chart, and how to use them in making objective decisions so as to produce profitable trading.

 

A trader should understand that the market mechanism is no more and no with other market we know. We have seen how the law of supply demand to work with human factors involved. This is the main staple driving prices, and opportunities arise when these simple relationships become unbalanced. If only we are willing to observe the interaction of supply and demand is always there every time, should the identification process will reverse the direction the price is not too difficult.

[pinoycity]

The difficult thing is how to know which currency will have higher demands is a period of time. In some instances, this is an easy thing to know but in most instances, this can be difficult to achieve.

[flybiz08]

that is why we have to pay attention to the economic and political events that take place in the countries of the currencies that we trade. In that way, it will be much easier to tell when a currency will appreciate or depreciate.

[Gee Dee]

A trader must try to recognize the basic financial market mechanisms if he wants to make certain accomplishment in this challenging ground of forex. A trader must also realize the fact that the currency values depend on the law of supply and demand. When a currency’s demand is high in the economy its value increases. And while the supply of a currency increases then the value of that currency will decrease.

[uncle gober]

traders must be able to have a trading plan that is in accordance with the passion of trading they have, therefore traders must be able to be better and be more maximal in conducting training and evaluation on the trading system they have.

[bigxy]

Trading plan is important no doubt, the traders should also stick with a trading journal which should be reviewed at the end of day/week to improve mistakes.

[uncle gober]

with the existence of a trading plan indeed will be able to help traders to be able to be better and be more maximal in carrying out trading activities and can be more directed to be able to generate profits in accordance with expectations.

[bearhugs]

To start trading FOREX you should first open up a practice account and gain experience as well as knowledge by reading at the same time. As a beginner, you should keep searching for information that helps you make better decisions about the Forex market.

[Namu]

If we have not been able to produce our own analysis properly, we can use free forex trading systems that can be obtained from certain brokers or certain webs, or can also be obtained from friends who already have good trading experience.

[uncle gober]

every trader must be able to have a trading plan that is in accordance with his passion, this is needed so that traders can get better and be more maximal in running trading activities that exist in real accounts to the fullest.

[Sininfinity]

 

To start trading FOREX you should first open up a practice account and gain experience as well as knowledge by reading at the same time. As a beginner, you should keep searching for information that helps you make better decisions about the Forex market.

 

 

Yeah and my preferred learning place is babypips. Because I have learned from there so I prefer it to others.

[uncle gober]

training and learning will indeed be needed by traders to be able to get better and be more maximal in improving existing trading skills to be better and be more maximal than before to be able to survive while on a real account.

[earnmaster]

Besides all those factors that you mentioned there another factors that drive prices and that is sentiment. Much of the prices that we see shows the sentiment towards the instrument. Sentiment is derived from current geopolitical issues or any other thing that is concern to the market.  

[Namu]

with trading using a small mode is very helpful to be able to do well and calm, because small capital will be able with us can handle the risk later, because of that with knowledge we can do trading with small capital will also be able to well in achieving profit