Simplicity is the key to become a successful trader
If there is any workplace where simplicity can be efficient, it is called a trading business. Here you can be a really good trader with simple planning and behavior. For every trades, you have to analyze the market first. For that, you can use different strategies and tools to find out when it is the right time for a trade to be opened. Then you will be opening one with simple money management plans for yourself. It will be based on the performance of your trades and the condition of your trading account. Then after closing your trade, it is time for thinking about the position size because there are other things you have to set for each trade. In the following, we are going to discuss all the things mentioned in the intro.
Strategies for market analysis
So as we said earlier, for opening a trade, you have to understand the market price condition. What is the suitable time for opening a trade and how it will be determined? For that, you can any of your strategies. There will be no problem with that. If you want to know when to open a trade use support levels. Of if there are no support levels nearby, work with pickup and resistance points. No, understand the future condition (possible) there is a tool called Fibonacci charts and timeframe. Understanding the price trends and key swings, you can open a trade just fine. Not your every trading approach will work out properly. We cannot assure you. However, with necessary changes made, you can create a good market analysis plan.
Understanding the basic details
Unless you have a clear knowledge about the Forex market structure, you are not going to become a successful trader. There are tons of variables you need to assess. Things might seem a little bit hard but if you visit RAKUTEN`s website, you can easily educate yourself. Learning has no age and limit. You must invest your precious time to develop your skills. Read more about the successful traders and try to come up with a solid idea. Use the demo account to test your basic skills.
Plans for money management
Like we mentioned earlier at the beginning of this article, after analyzing the market it is time to open a trade. You have to make money management plans now. As there are very little numbers of winning trades in almost everyone’s account, you must not take a chance with your investment. This business is not a gamble. It is a real business where with proper approach and money management, a trader can make a fortune with a small risk. For that, you have to know about your caliber and make money management plans accordingly. It can prevent your trades from losing too much because you are probably risking less for your comparatively poor performance. As the previous trades will be mostly full of losses, you should not be playing games with your precious money. So, make money plans and include them in your trading approaches.
Finding out a position size
No, that you have done everything right and opened a trade with a good money management plan, it is time to relax, right? Wrong, you still have some other things to do. You have to calculate the position size for your trade. It will be according to your preference. How much profit you want to make form it, should be considered in this regard. Because you have to set a limit to your trades. That limit will control the closing of your trades. They are called ‘stop-loss’ and ‘take-profit’. Those are the limit of loss you can handle to make any profit you want to make. When a trade has reached the limit of either of them, it will automatically close itself. Traders can use this feature to save their trades and investment.
nds. They had an IBM 360 which took up a large air conditioned room. Over the course of about a half year, I was able to test about a hundred
on ten commodities. Today, the samemechanical trend-following system could beat the markets. This too seemed impossible to me. So I
wrote computer programs (on punch cards in those days) to test the theories. Amazingly, his
theories tested true. To this day, I'm not sure I understand why or whether I really need to.
Anyhow, studying the markets, and backing up my opinions with money, was so fascinating
compared to my other career opportunities at the time, that I began trading full time for a living.
What was your first trading-related job?
I landed my first job on Wall Street in the early 1970s as an analyst with a major brokerage house. I
was assigned to cover the egg and broiler markets. [Broilers are young chickens up to 2'<i pounds
dressed weight. The futures markets for both broilers and eggs have since disappeared as waning
trading activity prompted their delisting by the parent exchanges.] I found it interesting that an
entry level guy like me was immediately placed in charge of dispensing trading advice. I once
wrote an article recommending that traders stay away from the market for a while. Management
censored that comment from the market letter— likely because it didn't promise to motivate much
I wanted to start applying computers to the business of analysis. Remember, in those days
computers were still typically punch card devices used for accounting. The guy who was running
the computer department seemed to see me as a threat to his job security, and he repeatedly chased
me off his turf. After about a month at that job, I announced that I was going to quit. The head of
the department called me in to find out why. It was the first time he had ever been interested in
talking to me.
I went to work for another brokerage house, which was going through a reorganization. There was
a lot less management, so I took advantage of the lack of supervision by using the accounting
computer to test trading systems during the weekends. They had an IBM 360 which took up a large
air conditioned room. Over the course of about a half year, I was able to test about a hundred
variations of four simple systems for about ten years of data on ten commodities. Today, the same
job takes about one day on a PC. Anyway, I got my results. They confirmed there was a possibility
of making money from trend-following systems.
I take it that computer testing of systems was not part of your job, since you
Traders who are always successful in trading forex certainly cannot be separated from how to do good and correct trading. This is because when we trade, we should always use a simple and easy trading strategy to display accurate signals. we also have to optimize our strategy if we have mastered it well. do not often alternate strategies because it will disrupt the pattern of analysis that we have done.
Speak about Simplicity its unique, for some traders for some strategy is simple but for another is not, example the naked trading by using Supply & Demand strategy is very simple & effective BUT for some traders is not the way for that strategy for trade making them confuse, in the other hands for some traders trading with some or a bunch of indicators its more easily and simple but some traders not convenience with a messy charts.
Did you ever consider upgrading your equipment? I know I had the idea as all my gear was poorly made and getting out of date. So I was looking around and a thermal vision scope is something that I would like to buy now. Not to say that my old one was that bad it's just that things can be better.
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