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You have to design your trading strategy properly

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  • You have to design your trading strategy properly

    If you can design any work according to your own interests it would be easy for anyone to accommodate. Then the human brain can get used to the working process easily. That person will be able to think properly in it. The possible changes required for good performance will be in your concern. In a nutshell, you will be perfect for that job and it will make a career for yourself. In the case of a trading business, you also should design your own working process. The methods for trading, the strategies, plans, and setups for your trades will have to be made with your hand (the thoughts). If it is made for your own, a trader will be ok in participating with his or her trading setup. In the following, we are going to discuss how you can design a trading business and the working process in it for your own.

    Make your trading process simple

    To make good trades you don’t have to be different. A simple trading process which traders have created from all the time in this business will be ok for any trader. At least you have to start with it. Because your trading knowledge will not be extensive form the beginning. It is natural for any trader to require some sort of practical knowledge for a work he or she is going to get into. A trader must also have some knowledge about the basic trading process by participating in the demo trading section. In that session, any trader can create and follow a simple trading process.You should do it too.

    Assess the important variables

    The new traders in the United Kingdom are more concerned with minor variables of the market. Unlike them, successful traders are always focused on the key ingredients of this market. For instance, they always assess the market trend before trading the exchange traded funds. Most importantly, successful traders are very good risk takers. They never trade the market with a negative risk-reward ratio as it demolishes the chances of recovering the loss. You have to craft a balanced trading strategy to make more money from this market. Stop dealing with unnecessary details.

    Use higher time frame trades

    When you are willing to make this business a serious profession for your life, it has to act like one. And your job will be making everything simple yet effective in your trading strategy. Trading methods are one of the things which contribute to trading performance. If you can manage to choose the right trading method for your business, the results from your trades will be good. Because there are two fundamentals in the trading methods. Time frames, the frequency of executing trades are two things related to the trading methods. If you choose a trading method which is too busy for your trading business, there will be hardly any time for your thinking. As a result, you will not also get proper time for spending time after improving your trading edge. So, mostly try to use higher time frame trading methods like ‘swing trading’ or ‘position trading’.

    Use safety precautions in every trades

    This business is unpredictable mostly because the markets you will be trading are so. If you follow good strategies and protocols, still a trade can be a losing one for you. So, it is not certain if you will make a good trade or not from your own trading process. So, safety precautions are a must for this business too. The first step should be taken against your trading capital. It should not spend more than what you should for a certain level of trading quality. And your money management should also have some for backup from the main balance. Other things like your trading plans also must not ricks that are too aggressive.

  • #2
    Most people who trade use ready made strategies rather than coming up with one themselves. That is not necessarily a bad thing, making a strategy from scratch requires a lot of knowledge and experience.

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    • #3
      I agree with you that we have to design your trading strategy properly. Our target is take profit...

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      • #4
        What kind of strategies would you recommend to a newbie?

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        • #5
          Trading strategy should be primarily individual, we should press down all the tools that will help to make a profit.

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          • #6
            I would recommend to all newbies to start with demo, testing various strategies and see what suits them the most. Start with short term trading, i.e.swing trading would allow you to feel the market and test knowledge from technical analysis. Long term trading requires some knowledge on fundamentals

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            • #7
              When comes to the trading especially forex trading totally depends on the currency rate of the country. Nowadays, most of the people prefer in investing in other countries to get more outcomes. One can dig this to take help of a financial advisor from Australian funds management for international investment and get outcomes as a passive income.



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              • #8
                On every battle war we have to prepare anything...also in forex world..if you don't have a good preparation, you will be crush..

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                • #9
                  whether it will succeed if we follow the instructions in your thread? does anyone prove it?

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                  • #10
                    The only way to find out is to test them on a demo account, I imagine.

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                    • #11
                      are able to walk without a teacher? whether effective self-study?

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                      • #12
                        I am not sure I understand your question?

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                        • #13
                          Many trade based on technical analysis i.e based on charts and indicators and a few more trade based on fundamental analysis. Apart from trading based on these analysis it is important to have a trading starategy as well to succeed in the forex market. Forex trading stretegies include Trend trading i.e trading by recognizing the trend of the market and identifying the entry and exit points by using indicators such as Moving Average, Stochastic, Relative Strength Indicators,etc.

                          Next comes range trading i.e. trading based on the idea that the forex prices will be held within a predictable range for a certain period of time. Here traders trade using indicators like Stochastic, Commodity Channel Index and Relative Strength Index.

                          Next is news trading

                          Then comes scalping where traders tru to execute a trade and exit within minutes with the hope of making profits.

                          Next comes hedging, traders use this strategy to protect themselves from unfavourable currency movements.

                          The last one is carry trading where traders borrow a currency that has a low interest rate and use this to buy a currency with a high interest rate.

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                          • #14
                            Which one of these approaches do you prefer to use when you trade?

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                            • #15
                              Took me a while to develop my strategy and be consistent but time well spent.

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