There are, of course, many other books to choose from, just not a lot about the FOREX. The more you read, the better it will be for your trading experience. A little secret from my past experience to note: First, all financial markets have inherent risk. You will not make money on every trade no matter what you use to trade with or how well you can trade. Trading is not a sprint but a marathon.

We have always believed that winning is contagious, whether hitting a baseball, trading, or whatever you may do. If you arc placing trades and you are winning on all your trades, take advantage of that and make some money.

The same holds true when you make a bad trade and lose money. If it continues, take a step back, go for a walk, turn off the computer, and come back later. We all know traders who will log off their real accounts and log onto a demo account and trade their demo account until they start making winning trades again. Whatever you do, just remember that it is a marathon.

Price trends are market conditions in which price movement is consistently rising or falling. The market condition opposite to trends is a sideways market in which highs and lows are approximately the same levels.

A trendline is a straight line joining a series of price tops or bottoms that represents an area of support or resistance. Generally speaking, a reversal in a trend or a slowing down of the pace of a trend is indicated when the trendline is penetrated significantly. Trendlines should connect bottoms on a rising graph and tops on a falling graph.

Interpretation

There are several points lo consider in judging the penetration of a trend-line. The number of times the price touches the trendline is significant. The larger the number, the greater is the support or resistance. The length of the trend is important. If the series of tops or bottoms covers only 3 to 4 weeks, the trendline is a minor one, and penetration is of little importance. However, if the trend covers several months or years, penetration of the trendline is viewed as a major occurrence. The violation of a very steep trendline is of less importance than that of a slower, more gradual one.

TREND CYCLES

Markets are in a constant state of balance and imbalance. They make impulse moves and then correction moves. We may refer to these moves as waves. We will see impulse waves and correction waves as markets move in trends. When market prices are flat, they usually have reached a temporary slate of equilibrium.

Trend is your friend. Remember that and you will win!

Feel like getting several forex software? STOP, before you buy anything you should read the reviews of the forex software you want to buy.

For more details about forex software – check this review.

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