How Do I Learn Strategies

Once traders have completed studying about the basics of the market, this may include basic terms and basic xauusd concepts such as xauusd, exchange rate, xauusd quote, xauusd spreads, xauusd pips, leverage & margin traders should move to the next advanced step of learning about strategies. Learning and understanding strategies will require traders to take time to learn about trade strategies so that they can know about how they can come up with their own.

Traders can learn how to develop & create their own strategies by first of learning about the commonly used strategies in market. After reading about the oftenly used strategies in traders can then come up with their own trade strategies as they will have learned the basics of how to come up with a strategy.

Most common strategies in market are:

Once a trader learns the basics of how to recognize simple chart patterns & trade these chart patterns using strategies, the traders can formulate complex systems that they can use to trade the market. Traders can then use these strategies to identify entry and exit points when they want to open trades.

Traders must consider several factors before coming up with their strategy. Traders will have to determine the points at which they will be buying or selling. Traders will have to determine their take profit targets as well as their stop loss levels. Traders will also have to determine the money management rules that they will use when trading with their strategy. For example a trader might choose to use the 2% xauusd money management rule which says that a gold trader should not risk more that 2% of their equity on 1 single trade transaction. Trader can also use the high risk reward ratio money management rule, for example a trader using high risk reward ratio of 2:1 - means that if a trader sets their stops at 20 pips, then they will place their take profit level at double this amount, this means the trader will place their take-profit level at 40 pips.

After determining all these and selecting the strategy a trader will then write down their strategy and the rules of these strategy so as to come up with a complete system to trade with.

Study More Topics & Lessons:

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• Bullish Hidden Divergence & Bearish Hidden Divergence FX
• Learn How to Use MT4 Demo Trade FX Account in MT4 Platform
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