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Day Trading Chart

Written by ForexCult Team
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Day Trading Chart In the following article, you are going to learn about a type of day trading chart that is known as a candlestick chart. There are many types of day trading chart out there that you can choose from, but there are many people that highly recommend this type of chart so I would like to tell you a little more about it. In case you don’t know there are two different ways that you can go about analyzing the actual price of a stock. The first way is by the fundamental analysis and the second way is by technical analysis. So lets talk about the fundamental analysis first, the fundamental analysis is often used as a tool to actually gauge the price of a certain stock that is based upon the fundamental attributes of that particular stock. The fundamental attributes can be referred to as the price to earnings ratio or the return on the actual invest and also the associated economic statistics. Day Trading Chart and Candlestick When it comes to the technical analysis you will find that this analysis tends to deal with the actual psychological component of the actual event of trading a stock and is often found to be influenced in the most part on the actual emotionalism. It is often found that the technical analyst is found asking the question on how others are viewing the stock and how that will actually affect the price of that stock in the near future. I am sure that you as a trader will be able to see why the candlestick day trading chart is the most effective way to actually gauge the known sentiments of the other traders that are involved in trading. Now that you have gotten what is known as an introduction to the candlestick day trading chart lets talk about the actual history of the chart so that you will have some background information to go by. Looking back through history you will see that it was the Japanese that were the first to actually use the day trading chart the candlestick. They use the day trading chart the candlestick to actually trade one of the world’s very first rice futures market in the sixteen hundreds which was actually a very long time ago, so taking that into consideration, you can see that this type of chart has been around for a long period of time. History of the Day Trading Chart the Candlestick Homma, who was a Japanese man, actually traded the futures markets in the seventeen hundreds and discovered that there was a certain link between the actual supply and also the demand of the rice, in which the markets were also found to be strongly influenced also by the emotions of the traders that were involved with the trading of the rice. Homma later realized that he could actually benefit from knowing how the emotions of those traders actually influenced the future prices of the trades. It was then that Homma understood clearly that there was indeed a major difference in the value of the rice and the actual price of the rice. Today, the actual difference that is between the value and the known price is just as valid with stocks as it was centuries ago in Japan with rice. Day Trading Chart and Fear In order to successfully use a day trading chart you must be able to recognize the fear as well as the greed that is present in the chart. There are certain signs that will represent the fear as well as the greed in these charts and will actually help you out in the long run. However, the ability to recognize the fear and greed before it happens is rather difficult to do and is the most difficult part of trading. There is no system out there today that will be able to predict without a doubt one hundred percent where there is a greed rally or a fear sell off present. However with the candlestick chart you will be able to recognize the probable areas for these turning points and that ability alone can help you out in the long run when it comes to trading in general. If you want to be a successful trader then I highly recommend that you find all the different charts that are available for your use and actually take the time to sit down and figure out which chart matches your personality as well as your style.

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Interview with Matthew Sheppard

Senior Forex Advisor at XForex

1. What is your name and position?

Hello, my name is Matthew Sheppard and I am a senior forex advisor at XForex.

2. What is your experience and professional background?

In the last 6 years I had filled several positions in financial institutions such as a stock broker, a foreign exchange desk manager, a financial consultant and in my recent role I serve as a senior Forex advisor for XForex which is an online forex company.

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We deal with clients on all levels from the beginning stages to the more advanced trading levels.

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Because of our high presence on the web, most of our business comes from the online world.

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Aside from all the benefits that XForex offer like commission-free trading, 24/7 online support, high leverage (200:1), XForex offers educational and learning trading experience that you won’t find anywhere else..

Our team of experts and financial trainers provide personal assistance and guide clients to financial success. We provide daily analysis and market reviews to our clients giving them a better understanding of the market and helping them trade profitably.

6. From your experience, what advice would you give a person who wants to enter the forex world?

My advice to the beginning trader entering the Forex world is as follows:
  • Learn the market and understand what you’re getting into.
  • Research and find the broker that suits your needs and wants. Look for a good offering but more importantly customer service, don’t go for the low rates offer without being certain they have a good customer service department. From my extensive experience in the Forex world your key to success will be your client-broker relationship. I can honestly say that at XForex they put an emphasis on servicing clients, which is so important.
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