If you are a new to online trading, you have probably heard about currency charts. For many traders Forex charts is a door to successful trading. Almost every professional Singapore trader develops his whole online trading strategy basing on the information that he gets from the charts only. You can get a plenty of information out of a simple chart for a certain currency pair: historical movements and approximate future direction. But before you begin trading according to the charts, you need to practice in order to understand them.
Reading the graphs is called a technical analysis. In general there are two types of the analysis: technical and fundamental. While technical is concentrated on the charts, fundamental is focusing on the world economical events and financial news. There are traders who trade using only technical or fundamental analysis types, but there also traders who focus their attention on both technical and fundamental analysis in order to have full information about the certain currency pairs that they trade with.
In order to proceed you will need a demo trading account. Almost all Singapore brokers have|offer a free demo account where you can improve your trading knowledge using the real quotes and charts. When you register for a demo account you can choose few currency pairs’ graphs that you will watch and practice on. We recommend you to choose the currency pairs that include USD, for example EUR/USD, USD/JPY, USD/SGD, etc. The USD currency pairs are the most volatile and have lower spreads. In addition it is much better if you trade with only few currency pairs and watch their behaviour. When you learn what influences these currencies and how they react on different events it will be easier for you to realize their directions.
You can set your chart for different time frames according to your trading strategy. The usual time frames that charts offer are from 1 min to a week. Means that each candle stick that you see in the chart is creating during the time frame you set. So if you have an hour of your free time to trade in demo, we advise you to set your graph on a 5 min time frame, so every 5 min when the last candle stick completes you will be able to make a decision regarding your trading. But we recommend using the little time frames like up to 1 hour for practice purpose only. Most of the professional Singapore FX traders use 1 day time frame or even 1 week targeting for the long term trading. The long term trading is more accurate and has more chances for success. But on the other side the long term and high time frame of your chart demand higher investments and margin.
>
Share This To Your Bookmark :)
Tags: Forex, Forex Trading, singapore brokers, singapore fx, singapore traders