Archive for the ‘Forex Market’ Category

postheadericon Trading Plan On Forex Market ¶

Beginners trying yourself as a trader leave the market very quickly. According to statistics, one broker, if you take a thousand people, 99% of total capital lost for two months. Some did leave, some returning after a year. There is a third group of people, which comes to the n-th after losing the deposit, that you need to learn this craft, and that in addition to profitable strategies that can be found, if we carry out a large number of hours in front of the monitor, you need to be more disciplined. It is the lack of discipline makes the most to lose money.

The emotional component, which causes the transaction to perform in accordance with the trading strategy is doomed to failure. ( Emotions that make losses, not adhering to the trading strategy, and includes a large volume or not to fix the level of losses – often lead to the loss of even greater amount or the entire deposit. Making a transaction at the time of acceleration of the price is very enriching major market players, which at this point that having large volumes, manipulate the price on the market with the aim to take down all the stop orders the bulk of traders. Surely there was a situation when I was a breakthrough price one way, you were part of the deal, as they say, the trend and the price was unfolding at the same speed in the opposite direction.

To avoid such mistakes, a trader has to be patient and to act according to the established plan of action to succeed in the market:

In trading, as in life, or you can take a local task, in any project, there must be planning of transactions in the forex market or the stock market.

Plan deal can and should be accordingly with its trading system for a year, month, week, day and even hour and minute, if your trading strategy allows you to do this. Trading Plan forex and stock market should be drawn up exclusively before the start of trading.

The underlying factor should be the definition of the market entry strategy. To this should be clearly defined for itself: what is the situation on the market is the signal for you. It is necessary to determine the type of analysis (fundamental, technical, wave and so on) that will be used for forecasting price movements.

If you use technical analysis of the market (graphic, fractal), set clear requirements for signal and confirmation. For example: “The signal is when a candlestick must break through the resistance level of not less than 10 points. Confirmation signal: the price chart is returned to the resistance level, touching it goes up again. ” If you take certain signals and confirmation, they should adhere perfectly. In its strategy it is recommended to use a limited number of signals for input, which can be separated for himself by priority.