Although many people are interested in forex trading, only a handful of them practices it because of the complexities it comes along with. However, according to Greg Secker equipping oneself with basic knowledge about forex trading is the most important thing people should know. The basics which include how to manage risk effectively and the fundamental forex indicators are important in enabling people to carry out healthy profitable forex trading.
Despite the fact that some economists deem forex trading to be entirely unpredictable, there exists a number of indicators that forex trader’s use in deciding what and when to buy and sell in the forex trading. Some of the common indicators used by the forex traders include the Simple Moving Average, the Exponential Moving Average among other indicators.
The Simple Moving Average is simply the mean value of a currency or in other words the stock over a specific period. There exists long and short SMAs. The averages are useful in revealing trends in the market and in determining the value of commodities in the future.
Exponential Moving Average is similar to SMA although short geared. It quickly reacts to changes in price. Forex traders often use it to takes advantage of fluctuations in the market.
The Stochastic Oscillator is a measurement of momentum in forex trading. The measurement is crucial in determining the behavior of currency in the future. Bollinger bands are used in the measurement of vitality. It measures whether the relativity of a commodity is high or low. Economic calendars, on the other hand, are the best indicator for new traders.
Greg Secker is an entrepreneur and a speaker. He holds a Bachelor’s degree in Agriculture and Food Science from the University of Nottingham. He worked at the Thomas Cook Financial Services where he developed the Virtual Trading Desk. The software was a forex trading platform based on the internet.
He left Thomas Cook Financial Services in 2003 and founded Learn to Trade. The company works round the clock to assist people to understand forex indicators, manage risks and be able to make profits in the business.