Learn Basics of Strategies

For traders wanting 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 Trading Strategies

· MACD Strategy

RSI Trading 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 fx trader has come up with their trading strategy, they should also include the following so that to make their trading strategy more successful.

1.Equity Management Rules

2.Forex Trade Psychology

Equity 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 fx trader should never risk more than 2 % of their account equity on any one single trade transaction.

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 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 % all the time without second guessing the trading 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 fx trader will wait for a signal to trade to be generated by their trade 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.

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Trade Forex Trading