If you are a beginner to Forex trading, you have probably heard about Forex charts. For many traders Forex charts is a key to successful trading as they build their whole Forex trading strategy basing on the charts only. You can get a lot of information out of a simple chart for a certain currency pair: historical movements, rates, trends and approximate future direction. But before you start trading according to the charts, you need to learn and practice in order to understand them.
In order to start you will need a demo trading account. Almost all Singapore brokers offers a free demo account where you can practice your trading skills using the real quotes and graphs. When registered for a demo account you can choose few currency pairs’ charts that you will watch and practice on. We recommend you to start with the currency pairs that include USD, for example EUR/USD, USD/JPY, USD/SGD, etc. The USD currency pairs are the most active and have lower spreads.
You can set your chart for different time frames according to your trading strategy. The usual time frames that charts offer are from 1 min to a week. Means that each candle stick that you see in the chart is creating during the time frame you set. So if you have an hour of your free time to practice your trading, we recommend you to set your chart on a 5 min time frame, so every 5 min when the last candle stick completes you will be able to make a decision regarding your trading.
We recommend using the little time frames like up to 1 hour for practice purpose only. Most of the professional traders use 1 day time frame or even 1 week targeting for the long term trading. The long term trading is more accurate and has more chances for brining you good profit. But on the other side the long term and high time frame of your chart demand higher investments and big margin.