To the untrained eye, shifts in the Forex market may seem unpredictable and random. However, once you know what you’re looking for, it can become second nature to know just how the markets are likely to move.
What shifts the Forex markets?
Simply put, news announcements and the release of reports shift the markets. A press release stating that job numbers for a particular country are better than predicted will likely see an upward shift in that currency. An announcement like Brexit or a hung parliament will probably see a downward trend.
Finding the right news
The key to seeing the movements in the Forex markets is knowing where to find the correct news reports. Finding them on your own can take hours of trawling through different sites and reading the relevant information.
Having software that’ll do that for you, like SmartCharts, cuts down the time you need to spend looking for potential shifts.
Knowing when to trade
Once you’ve got the information and have seen a trend, you need to work out when the best time is to get in and get out of the trade. SmartCharts was developed to make this as easy for the user as possible, finding the correct in and out points, and implementing a stop loss to protect at least 98 per cent of your money.
Knowing when not to trade
Just as important as picking the winning trades is recognising when a trade is bad, and staying out. In the lead-up to the snap general election, our traders were advising people to stay away from the pound, as its volatility meant there was no clear trend.
Learn to Trade
Having software that can analyse news and trends is useful, but you also need to know the strategies successful traders use to join their ranks. If you want to find out how to read the trends and profit on the shifts of the Forex market, come along to one of our free Forex workshops now.