Forex online currency trading — people new to the industry tend to want to make trades quickly in an attempt to make a quick buck. One of the things that novice traders need to remember is that trading over a longer time frame gives you more time to react to the market and you don't need to make decisions quickly.
Another thing to consider when entering a trade, be it a short or longer time-frame, is the risk level. A very import factor is the size of your contract. That will be a very strong part of your long term strategy. Second, you need to carefully consider the price movement, fundamental reports, support and resistance levels and using hourly, daily and monthly charts.
These considerations will help your long-term Forex online currency trading strategy.
You need to follow the financial news and current events to be a really wise trader. For example, if you look at the price fluctuations of the euro between 2007 and 2012, the price was strong, then it plunged dramatically during the financial crisis of 2008. The currency steadily climbed back up in value. There is another bottoming out of the euro when the financial crisis ravaged the economies of Greece, Ireland and Spain beginning in 2009, and up until today.
The point is, you can anticipate these price fluctuations if you stay informed about news and current events and have an idea of how markets may react to them.
Looking at a three to six month market chart will give you more than enough info on support and resistance levels. The idea is to be able to visualize the price movements without being inundated by too much information.
With Forex online currency trading, more often than not new traders will start to panic if they made a trade and the market moves against them — especially if they've leveraged their bets. The fundamentals of a long term strategy is to train yourself against this emotional reaction and to ride out the wave until the market moves in your favor and you begin to see some profit.
That's why many trading teachers say it's best for new traders to have smaller contracts, and to not leverage your trades right away. The key to Forex online currency trading is to be able survive the swings in the market and to have contracts big enough to have the potential to make you thousands of dollars, but aren't so big that you won't be ruined financially if the market makes a drastic move .
There are a number of easy forex strategies for beginners. Once you see some simple examples you will see that Forex trading doesn't have to be complicated to be extremely profitable.