Popular Questions for Forex Trader Newbies
This article is written based on the educator’s experience with a number of people who are just engaged in the forex trading business.
The author teaches the use of forex trading platforms and some simple trading strategies. However, from several education classes provided, repeated questions were raised by the participants. Here are some questions that often arise from the minds of novice traders:
1. Sir, which time frame is the best for us to trade forex?
This question often appears in question and answer sessions. Actually the use of time frames themselves, can be adjusted to the trading schedule and strategies of the traders themselves. If you are a pretty busy person, you can use a smaller timeframe. If you have a lot of time you can use a larger timeframe. Then using any timeframe, can be adjusted to your trading strategy. For traders with scalping strategies, you can use a 5-minute and 15-minute time frame, for intraday traders can use 1-hour to 4-hour, and for long-term traders usually use daily and weekly time frames. Advice from the author, before opening your forex trading position, you should confirm the direction of the trend with conditions at a larger time frame.
2. Sir, what are the most effective indicators when used in forex trading?
The author immediately answered emphatically that the answer was nonexistent. Keep in mind, that there are no indicators that guarantee success in your trading. Indicators help our activities in forex trading but do not be used as a tool for decision making. Then keep in mind also that the need for forex traders to understand the usefulness of each type of indicator. For example there are several types of indicators to measure the strength of a trend, then there are indicators to determine volatility and so on. As a forex trader, you should know how to use it and when to use it.
3. Sir, how many pips can I get in a day?
This question is very often asked. The question is actually a pointless question. In forex trading, setting a target based on pips is something that is not right and can damage your forex trading performance. Price movements in the market are very inconsistent and will not be able to regulate your acquisition for a certain period. Even how great your forex trading strategy is, you may suffer losses if market conditions do not support. You must focus on what you can control. So focus on the forex trading plan that you have made.
How? Give a little explanation of the answers above. For all of you readers who are interested also to take part in education we can contact us through our official website.