Finance

Developing A Good Trading Plan

One of the first things that can happen to you when you start trading is to earn a lot of money without having a fixed course. This is going to create a false feeling that trading is sucking, and you don’t need anything else. Then, the market will put you in its place. But of course, it will catch you quite high by the previous gain and the fall will be harder. Then the frustration will be such that you want to quit trading and think that everything is manipulated and is against you. Does it sound to you

Why does this happen? You were lucky to start, and you don’t have a clear strategy that allows you to trade without those ups and downs as if you were on a roller coaster. If you dedicate time to create one or several strategies and adjust the risk so that market movements do not leave you KO, you can put the odds in your favor.

 Define A Time Horizon

Your trading strategy has to be well defined in time. Sets when to open a position and when to close it. The exact moment in time or circumstance. In addition to the frequency. If, for example, it will not operate on Fridays or during a strip at night.

Input And Output Indicators

The indicators, as the name implies, will act to give any input or output signal of a position. A sign can be simple as a moving average or more sophisticated and personalized. The indicators with straightforward rules work very well in time.

Define The Risk In Our Strategy

Being listed in one of the HotForex broker review (รีวิวโบรกเกอร์ HotForex ,which is the term in Thai), defining the uncertainty in our trading strategy is not essential, it is crucial and fundamental. Your system must consider the amount you are going to buy or sell an asset and how much is the maximum you can lose.

The maximum amount you can lose can be calculated in euros or dollars, or you can calculate it in% of your account. I recommend you do it in percentage terms to avoid continually adjusting.

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