The Four step process...
Step 1: Finding opportunity
Choose the pair of currencies you will trade
Step 2: Evaluate the exchanges using:
Technical Analysis using charts
Step 3: Use Tactical Trading Strategies
The tactical trading strategies are specifically designed to help you begin trading in the currency markets.
There are three main types of styles in which you can apply these strategies which are Scalping, Swing,and Position.
- Scalping Traders look for very small profits as the markets make minor price movements and adjustments.
- Swing Traders look for larger profits than scalpers. These profits accumulate during larger momentum swings in the markets and the Swing Trader will usually use a mid-term chart delayed anywhere from 30 minute to End of Day to assist with their trades.
- Position Traders look for extremely large profits that accumulate during weeks, months, and even years.
Fundamental Analysis is depended on very heavily to aid this group of investors.
These types of FOREX traders also tend to use long-term charting such as daily, monthly or even yearly to time their trades.
Step 4: Execute Trade
Buy and Sell rules
Risk Management which includes all trading rules in addition to actual entry and exiting rules
As you begin following this method you will be able to develop confidence in your trading strategies. .