Five-Minute Periods Forex Trading:
What Is Five-minute Periods Forex Trading?
What exactly is five-minute periods Forex trading? It is a type of Forex trading that involves making trades based on the information in five-minute Forex charts. The object is to piggyback onto the short-term momentum when a currency starts to rise in value. This is done by purchasing the currency when it begins to gain upward momentum and selling it as soon as the momentum slows down.
Investors who take advantage of five-minute periods Forex trading are looking to make a quick profit and get back out of the currency as soon as they have realized the gain they are looking for. Usually, Forex traders who use five-minute charts to determine which currencies to buy will set up a sell order at the same time they buy the currency. When the currency reaches the sell point, the sale order will be executed automatically.
Investors who take advantage of five-minute periods Forex trading are looking to make a quick profit and get back out of the currency as soon as they have realized the gain they are looking for. Usually, Forex traders who use five-minute charts to determine which currencies to buy will set up a sell order at the same time they buy the currency. When the currency reaches the sell point, the sale order will be executed automatically.
Not for Beginning Forex Investors
Five-minute periods Forex trading is not recommended for beginning investors. This type of trade is riskier than long-term Forex trades. Part of the reason for this is that the commissions in Forex trading are not just a set percentage that is easy to figure and anticipate. The commissions in Forex trading are based on the spread between the bid price and the ask price. Since the commission is not a fixed percentage of the trade, you need to make sure you understand how the commission is figured before making a trade, especially in a short-term transaction. Otherwise, you may find that your profit from the trade is not enough to cover the commission.
Besides an understanding of how commissions are figured, an investor who is thinking about getting involved in five-minute periods Forex trading should learn how to use market indicators to determine which currencies to buy and when to sell them. The indicators that are most commonly used in five-minute Forex trading are the EMA (exponential moving average) and the MACD (moving average convergence divergence). Understanding how to use these two market indicators can help you make better investment decisions when you are doing short-term Forex trades.
Besides an understanding of how commissions are figured, an investor who is thinking about getting involved in five-minute periods Forex trading should learn how to use market indicators to determine which currencies to buy and when to sell them. The indicators that are most commonly used in five-minute Forex trading are the EMA (exponential moving average) and the MACD (moving average convergence divergence). Understanding how to use these two market indicators can help you make better investment decisions when you are doing short-term Forex trades.
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