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FOREX TRADING COURSE FOR BEGINNERS

reached. Then the commodities previously purchased are sold automatically to prevent from a
larger loss. For those investors interested in this type of investing there are certain fundamentals
that must be understood. Growth and inflation are the most important factors to take into
consideration. The prices of the futures markets are based on the predictions of what the futures
market will do.

Therefore future predictions of growth and inflation are crucial to commodities trading so that
investors can accurately predict what is likely to happen. Inflation and growth are far more
important than historical data when commodity investing.

In addition to the fundamentals, traders must also understand the technical indicators used to
spot trends before prices become unprofitable. They should also become familiar with concepts
such as market value, supply and demand, and trading behavior. Market value is important to
understand because it has to deal with price fluctuations and trend reversals. Supply and demand
is a familiar concept to many however commodity trading requires that investors research all
factors that come into play with supply and demand. Trading behavior is also very important no
matter the type of trading whether it is stocks, bonds, stock options, or commodities. It deals
with the psychology of trading and how self-awareness or lack thereof in regards to individual
trading behavior affects every day trading decisions made by investors.

Continue to research the futures market and decide if it is the market for you. Be sure that you
fully understand the concepts discussed above, that you implement a trading plan, and that you
develop and maintain the discipline to stick with your plan.

MARKET DIRECTION

Candlestick signals reveal the truth! No matter what the rhetoric is being reported on specific
topics/stocks, candlestick signals reveal the true sentiment that is conveyed by investors. When
you see record-breaking earnings reported by a company and a candlestick sell signal appears,
that reveals the true sentiment of what investors were expecting or anticipating. When you see
politicians reporting one thing, and the market responding in a different manner, that reveals
investor sentiment is reacting to what is really occurring. When the Dow was trading down 200
to 300 points on a day when the signing of the mortgage bailout bill was supposed to occur, that
was an immediate indication that something was not right. Did the markets already know that
there were not enough votes to pass the bill? If you are controlling billions of dollars of
investment funds, you probably have the research capabilities to know the true prognosis of how
many votes are going to be voting for and against the Bill. When money is on the line, the smart
money will know what the truth is well before the average investor on the street. The benefit the
candlestick investor has is being able to see what is occurring with people that actually buy or
sell based upon the information they have.

Candlestick signals provide a huge advantage. It allows for a visual confirmation of what buyers
and sellers are actually doing. Candlestick patterns provide a broader roadmap to indicate what
is occurring in investor sentiment as time moves on. A pattern can be the accumulation of

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