| Very often, beginners are asked quite a logical | | | | and not emotions. Emotional decisions are often |
| question: Where to start? The answer to this | | | | wrong and unprofitable. Trading Psychology... |
| question will determine how and what to study to | | | | In the next post I will begin by considering the first |
| become a successful trader. For profitable operation | | | | component of any successful trader - with the |
| in the currency markets, the trader must: | | | | methods of market analysis. |
| 1 - Be able to predict the trend (market analysis). | | | | Correctly predict the future - the main objective of |
| There are many methods of analysis: fundamental | | | | any trader. Which only methods do not utilize financial |
| analysis, technical analysis, Elliott Wave analysis, | | | | market participants to obtain accurate information |
| Candlesticks, Demark approaches to technical | | | | about upcoming events. In the course are not only |
| analysis, the theory of Bill Williams' Chaos, etc. With | | | | quantitative methods of forecasting, but also intuitive, |
| their help, the trader can anticipate changes in | | | | psychic, astrology, etc. |
| exchange rates in the future. | | | | Position trader, released on the currency market, you |
| 2 - To be able to choose the right moment to enter | | | | can compare the situation of people caught in the |
| the market and the closure of open position (Trading | | | | ocean or in the woods. And how he knows how to |
| Strategy). Identification is not enough mainstream, | | | | navigate in the surrounding space, the stars whether |
| choose the right moment to enter the market is | | | | in the form of ant, the arrangement of moss and |
| very important for conducting successful (profitable) | | | | lichen on trees depends on the fact whether he |
| trade. If you are having identified the bullish trend, | | | | climbs out of the woods, and if you choose, with |
| and buy at the peak, before the rollback, the rollback | | | | what cost. |
| can be initiated "lick" your Stop Loss order. It is | | | | Most common among traders are two types of |
| doubly a shame that, despite the losses, you | | | | analysis: technical and fundamental. One can argue |
| absolutely correctly identified the direction of the | | | | about which of these methods is the most important |
| market. As a result, after the execution of your Stop | | | | and preferred to work. In my opinion, technical |
| Loss order market turned around and went in your | | | | analysis is easier to learn and use. |
| direction, but without you. On trading tactics... | | | | Technical analysis is based on the belief that the |
| 3 - Observe the rules of control over capital (money | | | | market has taken into account everything: the |
| management). Compliance with these rules will | | | | events, and expectations of market participants. |
| significantly reduce the risks of your transactions. | | | | Movement of prices - is the vector summation of all |
| Your Money Management System will allow you to | | | | factors, even those that have not yet identified and |
| avoid involvement in the financial adventures and | | | | studied, but which have influence on the dynamics of |
| permitted to deal only with minimal risk. | | | | prices. My following posts will be devoted to the |
| 4 - Do not make emotional decisions (psychology). | | | | principles of technical analysis of financial markets. |
| When trading decisions should be guided by reason | | | | |