Trading Training in financial instrument is an art, which everyone
cant do. One must learn the basic disciplines of trading in
order to effective use the tools & techniques. It is not necessary
that one must participate in trades everyday, if he does trade
without confident or on participatory sake ending up with red
is more possible.
A good trader will never wait for peak or trough to catch any
pair of currency, if he is able to trace the trend will take
a good entry based on the technical. Every traders decision
has 50:50 chances for proving to be wrong. Then how a trader
can become successful If he is able to limit his loss and unlimit
his profit then he can bring win-win situation in his platform.
How best one person can judge a pair in most volatile situation
It is based on the theory and technique he uses for Forex Trading Training.
If one person believes in fundamentals than technical, then
he will take a trading call based on the fundamentals of that
A good trader will always put stop loss for his trades, but
the trader who has taken position based on the fundamental will
never see the position to make right entry. He require the help
of technical for that, otherwise chances for hitting his stop
orders are more and most of the time he will be losing money
even though he can give right calls.
A good trader must wear the dress of dynamic personality. He
must mix both fundamentals & technical in order to make a right
decision. He must be ready to change his trading style according
to the changes in the market situation. Assume one person is
taking a call based on the fact that euro zone interest rates
are going to touch its peak by the end of 2007. So he bought
euro today itself, but one important fact to be noted here is
market always love to grab the news which are going to be beneficial
for the time being. At the same time hawkish comments from the
FED people on the same day can lead to a drop of 100 pips in
Euro. So the trader must wear the dress of swing trader in order
to take advantage of this short term of two sides moves in Forex Trading Training market. He must
continuously watch the economic data to analyze the strength
or weakness of a pair. He can use the technical analysis for
taking the advantage of this swing trades. Basically support
& resistance levels will help a fundamental trader to enter
the market at right time.
One important fact or theory about a trader is we are the best
judge for our traders. One trader may get lot of trading tips
or advisory from their brokers or banks, but he must take his
decisions based on the strength of his analysis.
A trader must always try to quantify his risk in monetary terms
before he initiates a trade. He must always try to play by protecting
his equity. One must put limit for his at any time open position.
A policy should be framed before starting a trading desk. This
policy must be able to hedge his capital beyond a certain level.
He must adhere to the strategy or systems prescribed by the
policy. Proper record of every position with its reason must
be maintained for the better review of performance.
Avoid panic situation. Some times market behavior will be illogic,
one must understand even though FX market is highly liquid but
player are so big enough to drag sometimes in a different direction
either because of large DNT option market or because of high
speculative trade ratios.
Most widely used fundamentals are US economic data, Euro-Zone
data & other G-7 data.
Technical analysis will be help full for a trader who takes
short-term positions in the
RSI, Bollinger Bands, Moving averages, triangular formations,
accumulation-dispersion index, wedges, flag formation, etc will
help him in taking the advantage of range bound movements in
A trader must be ready to change his trading pattern if the
market moves against him. Simply that proverb to be remembered
Dont fight with the trend; Trend is always your friend. It
is very essential in order to protect the capital. A trader
must mentally be relaxed during the weekends. He must keep his
mind away from the market at least for 5-6 hours in a week,
so that he can refresh automatically all his techniques & thoughts.
A sound management of Forex Trading Training in FX spot as
well as option market should be given in order to generate good
amount of inflow. There are certain exotic creamy structures
that can be entered by the trader for making good money. But
remember one thing this derivatives have proven several times
that it is the major cause for massive destructions of wealth.
A trader must be very patient while doing trades, because FX
market is highly volatile so it may take sometimes to get good
results. If he is not able to judge the market dept and momentum,
then its better for him to sit aside and watch the play.
Ultimately one can become a good trader only if follows a discipline
in his trade. He must be patient enough to see his position
in green. A proper risk reward ratio must be maintained to see
whether expected rate of returns are being generated through
Leverage should not be pulled up to the neck. Identify the certainty
under uncertainty and judge the direction of uncertain movements.
worry what market is going to do, but worry what you are going
to do in response to the market
is not the knowledge, age, luck or fluke but its all about the
strategy & potentiality which best differentiate & describes
trader to trader.
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