There are many things that you can learn from reading a forex trading blog that will greatly enhance your effectiveness as a currency trader. These blogs are run by experienced traders for the purpose of sharing their insights on the market with other traders and are regularly updated with new posts when fresh developments come in. Here are some of the topics that you can find discussed on a trader’s blog.
1. Updates on forex brokers. One of the most important concerns of traders is dealing with the right broker, and these updates help keep in touch with the latest developments regarding their brokers, such as what new products they offer and what trading platforms they use as well as the payment solutions they now accept. These blog posts are an invaluable resource for traders who are looking for news about their broker as well as trying to decide which one to use.
2. Technical analysis for particular trading pairs. Some traders offer candlestick charts that show recent price activity of selected trading pairs that reveal trends that can signal treading opportunities. Others may offer pivot points, or averages of the closing, high and low prices of a particular currency pair for the trading day, which can help determine support and resistance levels.
3. Fundamental analysis based on the latest news developments. Currency exchange rates are determined by a variety of factors such as the release of new economic and political news, as well as the market sentiment regarding these. Forex trading blog posts discuss these developments and how they would affect a particular trading pair. For example, if news of a country’s Gross Domestic Product is set to be released, how would it affect its currency?
4. Book reviews. New books are being released all the time but are they worth your time reading? Many traders make it a point to read these new books so they can share their impressions with their fellow traders. For example, they might discuss who the best audience for the book is, whether it is appropriate for new traders or if it is aimed for those who already have some experience in trading.
5. Discussions of important issues related to forex trading. Many traders are interested in what their fellow traders think about a particular issue, such as a trading strategy or where a particular trading pair will be at the end of the year. So they may write a short post discussing the issue and inviting followers of the blog to post their comments or create a poll that readers can participate in by picking from the given choices (although they can still post their comments, of course).
A good forex trading blog can be as invaluable a resource to a trader as a forex calendar or tutorial on forex trading strategies since they not only provide him with an invaluable education but also give him a sense of what current market sentiment may be like as well as letting him feel the pulse of his fellow traders.