A trading system is a set of trading strategies for different phases of the market, or one strategy with a complex way to support transactions.
Trading strategy is a trader action plan.
The structure of the trading system:
1. The choice of a currency pair for work, or several currency pairs.
2. The choice of timeframe for trading, or several.
3. Trading time.
4. Actions to prepare for trade: carrying out technical analysis, viewing the economic calendar and studying important news, viewing the opinions of expert analysts, compiling a trader's journal.
5. Rules for opening positions: the presence of the main signal at the entrance, the search for confirmation signals, an additional signal (if necessary).
6. Rules for the management of capital and risk.
7. Rules of exit from the position: one or more signals to exit.
8. Analysis of transactions: search for errors, deviations from the selected plan, entry in the trader’s journal.
To become a system trader you need to solve a few questions for yourself:
1. What will I earn money on? What financial instrument do I understand: EURUSD or GBPUSD? Will I trade in gold or oil? Will I choose one or more currency pairs?
2. What timeframe will I look at for analysis? If I am a scalper, then M1, M5, M15. If I am a position trader, then D1 and H1. If I am a long-term trader, then - 1M, 1W, D1.
3. What time is convenient for me to work in the foreign exchange market? Will I be sitting in both sessions: American and European, or is it better to trade in the Asian session?
4. What will I look at before trading? What do I need to prepare for trading? Will I watch the news, read the opinions of other traders, view the economic calendar? Will I make a daily trading plan with a forecast of the course of the selected currency pairs? Will I write everything in the trader's journal?
5. What is the main idea (pattern) I trade? Do I have a main input signal? How many signals do I need to enter the market?
6. How much volume do I enter the market? What leverage can I afford? Will I place a stop-loss order? What will I do if my daily trading plan is wrong?
7. What is my signal to exit a position? Will I use partial order closure? Will I trawl my position?
8. Am I a disciplined trader? Do I analyze my mistakes? Do I keep a trader's journal?
To answer all these questions and create your own trading system, you need to try different options, and finally decide what is right for you personally.
In my next training posts I will try to give you the answers to the questions above so that you can find yourself in the Forex market.
Create your own successful trading system!
Trading strategy is a trader action plan.
The structure of the trading system:
1. The choice of a currency pair for work, or several currency pairs.
2. The choice of timeframe for trading, or several.
3. Trading time.
4. Actions to prepare for trade: carrying out technical analysis, viewing the economic calendar and studying important news, viewing the opinions of expert analysts, compiling a trader's journal.
5. Rules for opening positions: the presence of the main signal at the entrance, the search for confirmation signals, an additional signal (if necessary).
6. Rules for the management of capital and risk.
7. Rules of exit from the position: one or more signals to exit.
8. Analysis of transactions: search for errors, deviations from the selected plan, entry in the trader’s journal.
To become a system trader you need to solve a few questions for yourself:
1. What will I earn money on? What financial instrument do I understand: EURUSD or GBPUSD? Will I trade in gold or oil? Will I choose one or more currency pairs?
2. What timeframe will I look at for analysis? If I am a scalper, then M1, M5, M15. If I am a position trader, then D1 and H1. If I am a long-term trader, then - 1M, 1W, D1.
3. What time is convenient for me to work in the foreign exchange market? Will I be sitting in both sessions: American and European, or is it better to trade in the Asian session?
4. What will I look at before trading? What do I need to prepare for trading? Will I watch the news, read the opinions of other traders, view the economic calendar? Will I make a daily trading plan with a forecast of the course of the selected currency pairs? Will I write everything in the trader's journal?
5. What is the main idea (pattern) I trade? Do I have a main input signal? How many signals do I need to enter the market?
6. How much volume do I enter the market? What leverage can I afford? Will I place a stop-loss order? What will I do if my daily trading plan is wrong?
7. What is my signal to exit a position? Will I use partial order closure? Will I trawl my position?
8. Am I a disciplined trader? Do I analyze my mistakes? Do I keep a trader's journal?
To answer all these questions and create your own trading system, you need to try different options, and finally decide what is right for you personally.
In my next training posts I will try to give you the answers to the questions above so that you can find yourself in the Forex market.
Create your own successful trading system!
