Trade like a
technical analyst. Understanding the fundamentals behind an investment also
requires understanding the technical analysis method. When your fundamental and
technical signals point to the same direction, you have a good chance to have a
successful trade, especially with good money management skills. Use simple
support and resistance technical analysis, Fibonacci Retracement and reversal
days.
Be disciplined. Create a position
and understand your reasons for having that position, and establish stop loss
and profit taking levels. Discipline includes hitting your stops and not
following the temptation to stay with a losing position that has gone through
your stop/loss level. When you buy, buy high. When you sell, sell higher.
Similarly, when you sell, sell low. When you buy, buy lower. Rule of thumb: In
a bull market, be long or neutral - in a bear market, be short or neutral. If
you forget this rule and trade against the trend, you will usually cause
yourself to suffer psychological worries, and frequently, losses. And never add
to a losing position. With any online Forex broker, the trader can change their
trade orders as many times as they wish free of charge, either as a stop loss
or as a take profit. The trader can also close the trade manually without a
stop loss or profit take order being hit. Many successful traders set their
stop loss price beyond the rate at which they made the trade so that the worst
that can happen is that they get stopped out and make a profit.
0 Comments