Major Secrets of Buying and Selling in Forex: A lesson for South African traders

By: Chime Amara

What are the Secrets of Buying and Selling？

A. Buy Low and Sell High (BLSH):

Buy Low: This means - place a buy order only when the price of the currency pair or any other asset you wish to buy is currently at its lowest price so far during a given session. For instance, many analysts would consider EURUSD as offering currently a long term buying opportunity at its current range of of $1.07545. The reason for this is that the currency pair is presently at its lowest point so far within the five years range. Thus there are lower chances for this pair to break below this point except if a world war breaks out tomorrow in Europe or the EU splits suddenly. Otherwise, we expect some recovery in this region.

Sell High: This means - place a sell order when the currency pair has attained its highest point within a given session or range of time. For instance, many traders considered the price of XAUUSD at $1997 yesterday as having gotten to its highest point and they placed a sell order. Of course, gold has been selling since this point.

Otherwise, the major concern of the trader is to catch the currency pair he wishes to buy when the price is at its lowest. He buys at such a point and looks forward to selling off once the price has increased considerably.

B. Buy at the Lowest Support and Sell at the nearest resistance.

Support and resistance zones are the best buying and selling points today recommended for every trader.

Support is considered the lowest point where the buyers tend to come in and defend while Resistance is seen as the maximum point when buyers decide to take profits and prices fall immediately.

Above all, once the trader has mastered this pattern, he must learn to be patient and wait for the market to get to this point before placing any buy or sell order at the market.