Exchange trading can be of several types: stock, commodity, currency. To make money on the dollar rate, you need to choose trading on the foreign exchange market, the base pair of which is the euro / dollar.
Choosing a strategy
A beginner needs to learn how to conduct a correct analysis of the price behavior in the market, use only proven stock trading strategies. The most ideal in this case is night trading. The Forex market is not as dynamic at night as it is during the day. Although the level of profit in night trading is comparatively lower.
Asian night scalping
Quite often, novice traders are encouraged to learn Asian night scalping, or methods of using moving averages. This strategy is aimed at making small profits with less chance of losses. What is the essence of the scalping strategy? The working instrument is the EUR / USD currency pair with a minimum payment to a stock broker (spread) in Forex trading terminals of three points. Pairs with large spreads are not used for overnight scalping due to their lack of profitability. This technique applies exclusively to a five minute time frame.
Working hours for trading: Pacific and Asian trading sessions from 00:00 to 10:00 Moscow. At this time, the price is in a narrow range and is not subject to sharp fluctuations. The Asian trading session is the quietest time on the market.
This trade uses the technical analysis oscillator indicator Envelopes. It consists of two moving averages, located above and below the price, forming a corridor of its movement. The optimal removal of moving averages from the price is determined by the dynamics and activity of the rise and fall of the price. The higher the activity, the greater the removal. Envelopes form the upper and lower boundaries of the range of fluctuations in the corridor of the EUR / USD currency pair. When the price reaches the upper border, you should sell, and when the lower border is reached, buy.
The use of the Envelopes oscillator indicator in the Asian session is based on the natural law of market fluctuations, when in conditions of low trading activity, buyers are unable to significantly move the price up and sellers return it back, that is, from the lower border of the corridor to the upper one and back. The profit target will be 10-18 points, the opposite border of the corridor, since the maximum corridor width is 18 points.
With the acquisition of more experience, traders can switch to trading in the daytime, when the market is most active and the profitability of operations increases significantly. At the same time, the risks are increasing.
