Since the inception of blogging, the whole concept has really taken off, from personal diaries across the globe to a forex trading blog, there is so much in the way of blogs to choose from. This article focuses on forex trading blogs and how they can help the retail investor. The objective of this article is not only to identify a forex trading blog that can help in
1. Technical Analysis
A good quality forex blog will have information about the writers methods of using technical analysis to identify features of the current market as related to the past and the present. This could include the use of indicators, their function and how they are calculated; identification of support and resistance using fibonacci or by simply looking at historical bands of resistance or support whether along a trend line or horizontal or vertical.
Technical analysis may also look at the candlestick patterns, indicators such as moving averages, MACD, RSI and others and how to work out to what degree the market seems to be oversold or overbought. Depending on how these different factors line up as well as opinions of other professionals can help the forex trader to discern a suitable trading plan for trading the intraday market for example.
2. Fundamental Analsysis
Fundamental analysis is using socio-economic and financial economic factors, reports and announcements to gauge the strength of a particularly currency given the figure that has been released. Differences between previous announcements and the forecast announcement compared with the announcement itself can have a market moving effect, so it is important that a forex trading blogger is aware of how the fundamentals for the day can affect the market.
For example, if the central bank of a country has decided to raise interest rates, it is an indication of strength for the currency and can cause the market to shift in that direction of strength. So it is worth mentioning on the blog that this announcement or comment from a key figure in the financial world has been made and its implication on the current currency pair and its trend.
3. Trading psychology
Trading psychology is an underlooked niche within the huge retail forex mix. A good forex blog or website will include aspects of psychology of effective, profitable trading of the currency market online that help the trader to gain key distinctions that will make them more effective traders. Adopting healthy beliefs; mindset; a trading plan; identification and intention of what the goal of a traders trading exactly is and being able to build a good relationship with the forex broker in use all constitute some of the key areas for address on the blog regarding trading psychology.
Generally, retail forex traders who are not yet proficient in their trading tend to look out on a forex trading blog for a system or strategy that makes them pips on a consistent basis. This is usually a substitute for taking action and actually practising trading the forex market, live in real time at a risk level that is appropriate for the investor. Therefore, the most effective forex trading blog keeps things as simple as possible for every level of trader, helping the new and the veteran alike by providing a continuous improvement and learning opportunity for the forex trader.