Forex Trading Basics Check out our free 5 Day Beginner Bootcamp at http://daytradervideo.com What do we look for when we get ready to enter a trade. This is all about forex trading basics. We have to get these basics down before we take on more complicated decisions in the market. As usual the first thing that we look at is the pre-market and how it looked. The forex differs a little from the ES in that the pre-market consists of the European open. So, there is always a heck of a lot more action going on in the 6E during the pre-market. On this particular day you'll notice that the market was running really well. For the most part it was respecting areas. It was slighly overrunning them but this is another part of forex trading basics . When you are able to recognize this you can make an adjustment for your plan and take valid pre-cautions to prevent from being stopped out. The second thing to notice in this market is that the trades are running to the OB and beyond. When this happens we are more prone to keep our target of OB. So, in this particular trade we have a very strong run and a retracement back to our area which is the midband. We are more than happy to take this trade because it is a very attractive setup. One thing to note is that while waiting to get a fill on this trade you don't want to be overly anxious. Instead you want to patiently wait for it to hit your area. Don't get too anxious and do not move your order up higher than what you typically would have your order waiting at. Finally I get my order filled and as you can see it pays to be patient. Many traders will lose all patience and get a worse fill than they initially anticipated. After that I put the video on pause and allowed it to work. Eventually I took profit at 12 pips. My exit was a pip from the 61% extension. I hope you enjoyed this video on forex trading basics.
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