Learn Basics of Strategies

For traders who want to use strategies to trade the market there are a few other basics which a fx trader should know that will help to make the strategy being used become more successful.

After one has learned about analysis of indicators & the analysis of charts, a trader will need to create a strategy. The strategy that a beginner trader uses can be based on the following most oftenly used trade strategies in Forex.

Moving Average Strategy

· Moving Average Strategy

MACD Strategies

· MACD Strategy

RSI Strategy

· RSI Strategy

Bollinger Band Strategy

· Bollinger Band Strategy

Stochastic Oscillator Trading Strategy

· Stochastic Oscillator Strategy

A trader can learn about the basics of how to create a strategy by learning from the above examples strategies.

Once a forex trader has come up with their strategy, they should include also the following so that to make their trading strategy more successful.

1.Equity Management Guidelines

2.Forex Trade Psychology

Equity Management Guidelines

Money management rules should be part of your strategy - the rules will help you to manage risk. This means that you'll use 2 rules of money management - these are risk:reward ratio and drawdown reducing method when placing your trade positions so as to figure out the lot size that you'll put in the market. The most popular money management rule use in forex and the one that you should also add to your trading is the rule which says that a fx trader should never risk more than 2 % of their account equity on any one single trade position.

To learn about these 2 money management rules traders should read the equity management guide that's on the learn tutorials section of this web site under the key concepts lessons.

Forex Psychology Mindset

In order for one to become successful when trading the market a forex trader has to learn about market psychology. The psychology or mindset that is required to become successful in forex trading is one that avoids the emotions of fear and greed while trading & is a mindset of total discipline that the trader will follow all their rules and their strategy and only trade with signals that are generated by their strategy. With discipline a trader will not trade unless their trade system generates a signal. One will have the mindset of only following their trade system 100 % all the time without second guessing the trading system. A disciplined trader will also not place trade positions in the market just because the market has started and begun to move upward or downward, instead a fx trader will wait for a signal to trade to be derived/generated by their trading strategy.

In order to learn more about psychology & how to manage emotions while trading the market a trader can read the psychology tutorials from the learn lessons section of this web site under the key concepts courses.

Learn More Lessons and Tutorials and Topics:

Trade Forex Trading