Unless You Do This, You Are Not Learning To Trade Forex Correctly

When you are learning to trade forex you must learn how to create a trading plan. It is an essential part of trading forex. Yet most traders don’t. Which is why over 90% lose money in forex.

Why develop a trading plan? 대여계좌
Because the worst time to make a decision is in the middle of the trade. If you are learning to trade forex, you need to understand that emotions can sabotage your trades. A trading plan allows you to decide what your trading parameters are going to be without all the emotion you get when you are in the middle of a trade.

To create a trading plan, there are some questions you need to ask yourself.

What type of trader are you?
To find your trading style you need to figure out some things about yourself and how you are going to be trading. For those learning to trade forex, there are basically three types of traders: Short Term, Medium Term (or Mid Term), or Long Term

Short Term
– This is High- Frequency Day Trading.
– Short term trading in currency is much more frequent that in stocks.
– Positions are held for anywhere from a few seconds to at most an hour.
– Traders profit by opening and closing positions after gaining just a few pips sometimes 1 or 2 pips.

Medium Term
– Also called Directional Trading or Swing Trading.
– Medium Term positions are typically in trades for a few minutes to a few hours, sometimes a day.
– Typically have well defined trade entry and exit strategies focusing on making money from more sizeable movements than Short Term Traders.

Long Term
– Long Term Traders typically hold positions for weeks and months.
– Looking to profit on long term movements in a trade- want to see major price trends.
– It’s a good idea to take some profits from profitable positions, yet still maintain a core position in that trade (this means you sell some of your position and keep a portion)

How much time do you plan to spend researching and watching your trades?
Be realistic as to how much time you can spend doing this. Remember to schedule family time, leisure time, and if you have a job your boss may not want you to watch the market or do research at work.

 

 

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