Learn Basics of Strategies
For traders wanting to use strategies to trade the market there are a few other basics which a 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 Bands Strategy |
· Bollinger Bands Strategy Stochastic Strategy |
| · Stochastic Strategy |
A trader can learn about the basics of how to create a strategy by learning from the above examples strategies.
Once a trader has come up with their strategy, they should also include the following so that to make their strategy more successful.
1.Money Management Rules
2.Forex Trade Psychology
Money Management Rules
Money management rules should be part of your strategy - the rules will help you to manage risk. This means that you will use 2 rules of money management - these are risk reward ratio & drawdown reducing method when placing your trades so as to determine the lot size that you will 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 trader should never risk more than 2 % of their account equity on any one single trade.
To learn about these 2 money management rules traders should read the equity management guide that's on the learn lessons 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 trader has to learn about psychology. The psychology or mindset that is required to become successful in forex trading is one that avoids the emotions of fear & greed while trading & is a mindset of total discipline that the trader will follow all their rules & their strategy & only trade with signals that are generated by their strategy. With discipline a trader will not trade unless their system gives a signal. One will have the mindset of only following their system 100 Percent all the time without second guessing the system. A disciplined trader will also not place trades in the market just because the market has started to move upward or downward, instead a trader will wait for a signal to trade to be generated by their 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 tutorials.
