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 like xauusd, exchange rate, xauusd quote, xauusd spreads, xauusd pips, leverage and margin traders should move to the next advanced step of learning about strategies. Learning & understanding strategies will require traders to take their time to learn about trading strategies so that they can know how to come up with their own.

Traders can learn how to develop and 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 online traders can formulate complex systems that they can use to trade the market. Traders can then use these strategies to identify entry & exit points when they want to open trades.

Traders must consider several factors before coming up with their strategy. Traders will have to identify the points at which they will be buying or selling. Traders will have to identify their take profit targets & also their stop loss order levels. Traders will also have to identify the money management rules that they will use when trading with their strategy. For illustration 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. Trader can also use the high risk reward ratio money management rule, e.g. 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 trade strategy - a trader will write down the trading rules of their strategy so as to come up with a complete system to trade the market with.

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