For all of its numbers, charts and ratios, trading is more art than science. And just as in artistic endeavors, there is talent involved, but talent will only take you so far. The best traders hone their skills through practice and discipline.They perform self analysis to see what drives their trades and learn how to keep fear and greed out of the equation.
In this article we'll look at nine steps a novice trader can use to perfect his or her craft; for the experts out there, you might just find some tips that will help you make smarter, more profitable trades, too.
Step 1. Define your goals and then choose a style of trading that is compatible with those goals. Be style of trading you choose.
sure your personality is a match for the the style of trading you choose.
Before you set out on any journey, it is imperative that you have some idea of where your destination is and how you will get there.
Consequently, it is imperative that you have clear goals in mind as to what you would like to achieve; you then have to be sure that your trading method is capable of achieving these goals.
Each type of trading style requires a different approach and each style has a different risk profile, which requires a different attitude and approach to trade successfully
Step 2. Choose a broker with whom you feel comfortable but also one who offers a trading platform that is appropriate for your style of trading.
Before you enter any market as a trader, you need to have some idea of how you will make decisions to execute your trades.
You must know what information you will need in order to make the appropriate decision about whether to enter or exit a trade.
Some people choose to look at the underlying fundamentals of the company or economy, and then use a chart to determine the best time to execute the trade
Step 3. Choose a methodology and then be consistent in its application.
Before you enter any market as a trader, you need to have some idea of how you will make decisions to execute your trades.
You must know what information you will need in order to make the appropriate decision about whether to enter or exit a trade.
Some people choose to look at the underlying fundamentals of the company or economy, and then use a chart to determine the best time to execute the trade. Others use technical analysis; as a result they will only use charts to time a trade.
Step 4. Choose a longer time frame for direction analysis and a shorter time frame to time entry or exit.
Many traders get confused because of conflicting information that occurs when looking at charts in different time frames.
What shows up as a buying opportunity on a weekly chart could, in fact, show up as a sell signal on an intraday chart
Step 5. Calculate your expectancy.
Expectancy is the formula you use to determine how reliable your system is.
You should go back in time and measure all your trades that were winners, versus all your trades that were losers.
Then determine how profitable your winning trades were versus how much your losing trades lost
[ForexGen Money Manager]
Benefits of being a Money Manager with [ForexGen]:
* Providing three different commission sources.
* Weekly commission plan.
* Easy & fast commission withdrawals.
* Fixed percentage of the profits.
* P = k * D “P=Profit, k=Variable Parameter, D=Deposits”
The money manager gets a fixed percentage of the profit previously agreed upon with the client for managing the client funds as a bonus feature.
The most competitive trading conditions:
* 2 pips spread on six currency pairs.
* Providing online trading services without maintenance margin, margin call and no automatic closing of positions below the initial margin on weekdays for accounts with initial equity of up to $1 million US. The margin level have to be recognized Fridays at 23:00 CET and before public holidays.
* Leverages up to 1:200 for accounts up to $1 million US.
* Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.
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