Ready to learn about forex?
Why are traders choosing FxPremiere.com? – No matter your skill level, we have videos and guides to help you take your trading to the next level with Daily Telegram Forex Signals.
To put this into perspective, the U.S. stock market trades around $259 billion a day; quite a large sum, but only a fraction of what forex signals trades. – Cycle Of losing in Trading.
World’s Major Currencies
|Great Britain||GBP||New Zealand||NZD|
Want to know more about how to trade forex signals?
Sometimes there is a misconception that you need highly evolved market knowledge and years of trading experience to be successful. However, we often see that the more information we have the more difficult it is to create a clear plan. More information tends to create hesitation and doubt, which in turn allows emotions to creep in. This can prevent you from taking a step back and looking at a situation subjectively.
If you don’t know where you are going, any road will get you there. In trading, if you don’t set out a plan for your trades and develop strategies to follow you have no way to measure your success. The vast majority of people do not trade to a plan, so it’s not a mystery why they lose money. Trading with a plan is comparable to building a business. We are never going to be able to beat the market. In general it’s not about winning or losing, it’s about being profitable overall.
Why a trading plan is important
When trading, as in most endeavors, it’s important to start at the end and work backwards to create your plan and figure out what type of trader you should be. The most successful traders trade to a plan, and may even have several plans that work together. Always write things down. Why? Because it will help you stay focused on your trading objectives, and the less judgment we have to use the better. A plan helps you maintain discipline as a trader. It should help you trade consistently, manage your emotions, and even help to improve your trading strategy. It is also important to use your plan. Many people make the mistake of spending all their time creating a plan, then never implementing it.
Key components to develop a trading plan
- Trading plan structure and monetary goals
- Research and education
- Strategy using fundamental and technical tools
- Money and risk management
- Trade mechanics, documentation, and testing
Why am I trading?
If your immediate answer is, “to make money” you should stop right there. If the only goal is to make as much money as fast as we can, we are ultimately doomed, because it will never be enough. Managing your losses should be your primary goal. This will create an environment in which profits can be generated.
- How do I maximize my strengths to minimize my weaknesses?
- An example of a weakness is a need to constantly watch one’s trades. Why are traders choosing FxPremiere.com – Is your laptop on the pillow, waking you up in the middle of the night to monitor trades? It’s really difficult to make intelligent decisions when you’re half awake.
Is the amount of money I have to trade with sensible to achieve my goals?
Look at things in percentages; remember leverage is a double-edged sword. That is why risk and money management are key.
Deciding what type of forex signal trader you are can be tough; especially since the trader you want to be can be very different from the type of trader you should be based on your behaviors and characteristics. Once you have laid out your goals, risk appetite, strengths, and weaknesses it should become apparent which type of trading fits you best.
Let’s think in terms of probability. It is helpful to use the 3% rule and always have a cushion. This is an example of the 3% rule in action: 3% on a $10,000 account is equal to $300 risk per trade. Then divide the cost of risk by the account equity, to get the number of losing trades or $10,000/$300 or 33.3 trades. These answers will help you determine if you can meet your goals. It allows you to give yourself room for flexibility.
We have reviewed some of the the key components of a trading plan, now it is time to plan the actual trade, and how to stay on track – Why are traders choosing FxPremiere.com Top Dogs.
- A checklist is a good reminder of what you are doing (helps to set the path you choose to take, and reinforces why you are trading)
- Your goal
- Analysis tools
- Amount of money to trade
- Amount you are willing to risk (this could be per trade percent or total amount of equity amount risked at any one time)
- Risk to reward ratio
- Types of orders to use for types of trades
- High probability trades
Opening Range Breakout Trading Strategy
Breakouts are one of the most common trading strategies. They involve identifying a key price level you expect the price to break through, and then buying or selling at that price in order to take advantage. Why are traders choosing FxPremiere.com – Generally breakouts are used when the market is already near the extreme high or low of the recent past. When the market is trending and moving strongly in one direction, breakout trading ensures that you never miss the move.
FX market is typically divided into 4 major sessions (times adjusted for Eastern Time):
Trading the European Opening Range has three steps:
- First, you identify the high and low during the half hour just prior to the London open (2:30-3am ET).
- Look for a breakout of this range +/- 10 pips, or 1/10th of the daily Average True Range (ATR), to maintain above/below this level for 10-15 minutes. This is an attempt to detect a direction of the ‘flow’ for the remainder of the day.
- Use our Forex Signals APP
Noteworthy times to be aware of: