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Trade
Create a Forex trading plan
People without planning out their trading activities in the Forex market will likely be trading erratically. In this case, his decision will be affected by various factors, including emotions, is able to impose a hasty and questionable decisions. In this situation, the trader turns into an enemy the very same for myself.
Planning your work on Forex is an obligatory condition of professional trading. Having a plan of action that was checked and tested the speculator will have a chance to succeed. In today's article will present a few plans for the trade.
Forex trading plan - rules that describe the trading process of the trader, including the conditions to the transaction, of position tracking and closing. Sometimes talking about the fact that the plan in Forex is a trading system, but if you look closely, it appears that the plan includes rules of capital management.
We need to trade?
• high-quality trading system
• Mani management
• discipline
With discipline to help, alas, nothing, as this is a matter for each trader. How to calculate optimal money management, You can read in a special article. At this point we should be more interested in the creation or selection of a trading system.
If you create a Forex trading plan we will need to do the following steps:
• to describe those market conditions and situations in which we will enter into agreements
• to develop the best for our option system maintenance positions
• to identify the ways of fixing of result of trading, will use
The difficulty faced by all authors of the systems lies in the combination of different instruments. For example, the trader picked up the conditions for a deal, decided on the principle of position tracking and chose the option of closing foreign exchange transactions, but not the fact that all of these elements to complement each other.
Examples of a plan on Forex
As examples of trading systems (plans) can result in the following options:
• Breakout indicator-free system
• Trading on momentum
• Minute strategy
Money management should be selected independently, since it is largely a matter of personal. The fact that some people will prefer to opt for small risks, while others agree on more aggressive work in the market. Do the same rules proposed systems You can explore and choose for themselves the most suitable option.
Why is it important to have a Forex trading plan? Imagine that a trader has a clear idea of in what market conditions it will operate, and what is not. This means that in the process of trading when the price will change quickly, you might see anything. For example, you can face fear, excitement, greed and so on. Naturally, such satellites are a dealer only add to the problems, reducing the role of logic and sound reasoning in reaching a decision.
If the covering of loss, you feel anger, a desire to win that it often leads only to losses. If the trader has a plan of action, it will be easy to follow all the points prepared in advance and tested. Discipline we mentioned earlier, just helps a person to retreat from those conditions that exist in the system.
The principles of creating a Forex plan
Pre-prepared plan of action in the Forex you want to test to make sure it is really worth. If the test fails, then it is a signal to man that it is time to begin to correct a situation, to conduct a new analysis, those items which were adopted into the system. If trading without a plan, we act almost blindly, using his knowledge, which was not systematized and verified in an objective manner.
To create your own trading plan Forex, and not to take, one must first understand that the system is based on the idea. All the planning of the trader's action revolves around a certain idea, which is waiting for its implementation. Only around the idea of already going the different items.
Example. If to speak about support of the transaction, the method selected, again, with the idea that the basis for the system. If the person decided to do scalping, and the average size of transactions plans on the level 10 pips, the trailing stop is not quite appropriate.
Price just will not have time to go far from the opening point of the position that would make sense the emergence of a Trailig Stop. By analogy it is possible to pick up and conditions for the transaction, and the conditions for its closure.
Today, there are a huge number of trading systems, but you should be careful when making your choice. The fact that many of the strategies are no longer relevant or was not created by professional traders. Such options will do more harm than good, what should not ever be forgotten. If you decide to use someone else's plans trading on Forex, you should first test on a demo account or cent real.
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| Category: Forex | Added by: (06.11.2017)
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| Views: 302
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