One of the essential factors for earning profit in Forex Trading is the ability to read a Forex Chart. Most of the newbies lose their entire trading account in just a few days. After losing their money, they wonder what went wrong? One of the most common reasons of losing is blindly following the trading strategy. They often search for a strategy on internet. For example you have learnt the “Double Top Trading strategy”. You always enter the trade whenever you witness a double top then you are likely to lose instead of earning profit.
If blindly following other’s trading strategy would have worked for everyone then no one had ever lost money in Forex trading. Obviously it is not that much difficult to learn and master some trading strategies. Mere applying the same strategy whenever the same situation occurs cannot guarantee profit. Being able to read a Forex chart effectively is a must to understand and predict the future price of the value of a currency. You need to be able to take action and decide accordingly.
Therefore the first step that you should take to become an expert trader is to learn to smartly read a Forex chart. Nowadays even teenagers are reading Forex charts like professionals. This ability helps you to understand the reason of the shift in the price of a currency. Then it enables you to predict its future movement.
For example you observe a selling signal in the double top. But then you read a Forex chart and comes to know that the price is about to break upwards. In such a situation, you must buy instead of selling that currency. If you would not be able to read the chart then you would have sold that currency and missed a golden opportunity. Thus you must sincerely devote your time to learn reading charts.