Know your market!

jd1888

Active member
Messages
175
Likes
6
Hi All

KNOW YOUR MARKET.

As this is a golden rule in business and trading should be treated as one how can a newbie (me) get to know more about a certain market?

Thanks in advance for any help.
 
Hmmm, you may use Forex signals on the trading instrument you are interested in. That will certainly help you to work out your own trading strategy. And some signals providers describe their trading systems, which makes situation more clear.
 
Experience... Watching your market.

This is excellent advice.

If you're serious about a particular market, you really need to be willing to invest the time to learn about the market, its history, what events impact it, who's made money trading it, how its value is determined, literally absorb as much information about it as you can.

_______________________
TradeCamp - no 'bs' trading education
 
Hmmm, you may use Forex signals on the trading instrument you are interested in. That will certainly help you to work out your own trading strategy. And some signals providers describe their trading systems, which makes situation more clear.

DONT USE ANY SIGNALS!!!!!

They will divert your attention from where it needs to be and will slow your progress in working things out for yourself.

As others have said, the only way to really get to know a market is through screen time and lots of it. It's also important that you really think about what is/could be going on and why things are happening. Just staring blankly at a screen and expecting to magicly learn something isn't going to get you anywhere.
 
As well as watching the charts so you get an idea of how they move, read the news which directly relates to whatever instrument you are trading in. Understand what kind of factors move the price.

And keep an eye on news which indirectly affects what you are trading in - it is always good to know how wider economic events can affect the chart.

The factors you need to know about does to a large extend depend on what time frame you are trading in. e.g. if you trade on a minute chart then wider economic events will be of less significance than if you were trading on a much bigger time frame.
 
I have been doing this for nearly a year and I have learned one thing:

Good company news can mean prices go DOWN - if the news is not as good as brokjers expected.
Bad company news can make prices go UP as the news may not have been as bad as brokers expected.

You need to learn trends in a particular sector. I like the mining sector. Not as cheap as they were a few months ago but still room for growth over the long term. They are also volatile. Xstrata were as low as 555 on Monday but closed on Friday at 691. Gotta be a good un!
The news from China and US turned around bad forecasts earlier.

As has been said you need to watch and learn and only experience will help. keep trades and potential losses small and affordable. Generally I only trade £1000 per company. My first go atthis was to buy Woolworths last November - took a hit on that but I am ahead now
 
DONT USE ANY SIGNALS!!!!!

They will divert your attention from where it needs to be and will slow your progress in working things out for yourself.

Using signals can really help in creating your own trading system. And they will not slow, but speed up your progress in learning. Signals help you to study other professional traders' methods of trading. They are a possibility to get more knowledge and advice from professionals. So, that won't divert your attention if you want to study the market.
 
Top