Tip 6: Specific trading methods

Recommended currency pairs

The Australian dollar is recommended, because it tends to move in the most straightforward way.
While people often think that a currency that shows major movements has better returns, in reality a currency that moves in a straightforward manner is the most profitable.
When the market is slow it shows little movement, and when the market is rising it rises.
Charts for the Australian dollar seem to move in a straightforward manner as forecast.
The New Zealand dollar, on the other hand, can undergo sudden and surprising moves.
Since the market for the New Zealand dollar is small, a slight disturbance can result in considerable movement.

Technical indicators are not helpful

I almost never use technical indicators, and I basically avoid using the chart analysis method as well.
There is a limit to the usefulness of charts because they use past data to analyze the future.
If they were always right, then everybody would get rich in the market.
While in fact chart analysis probably is important to some degree, it also often can be deceiving.

I think an investor can start trading after he or she learns to analyze sentiment, fundamentals, and charts together.
I don't think it is a good idea for an investor to use only charts, only fundamentals, or only sentiment.
It is better to combine all three of these together.

Forex trading in times of war, earthquakes, terrorism, or similar incidents is a form of risk management

When war breaks out in the Middle East, the dollar first falls and then rises in value.
In the event of a major earthquake in Japan, such as the Great Kanto Earthquake of 1923, the value of the yen will decrease.
As another means of risk management, it is important to have multiple means of communication such as cable modems and fiber-optic lines as well as personal computers, so that you still will be able to conduct transactions in the event of a disaster.
Also, you should have generators available.

In addition, while forex brokers probably have plans and systems in place for responding to a disaster, this may be difficult at some brokers, such as smaller ones.

Eight tips for Forex trading in Japan