The first key factor is one we have mentioned already, additionally it is the one factor of trading that seems to get the most attention – The Trading Strategy. mcx margin exposure
1. The Trading Approach
Your Trading Approach is simply how you transact, what must happen in order that you can pull the trade trigger? Most trading strategies are based after indicators such as RSI, Moving Average or a combo of a few different indicators, personally I like not to trade primarily based after indicators. Being able to simply read the Price Action off of the chart will provide you with a much more robust starting in deciding your deals.
Whatever your choice, using a good trading strategy is essential when trying to become a profitable Forex investor. The question is what do I mean by ‘good’? What constitutes a ‘good’ trading strategy? Many traders define a ‘good’ trading strategy as the one which has a high rate of success. The real truth is you need to ask, how has this ‘success rate’ been founded? Over how many trading was it determined, 12 trades? 100 trades? And what about asking the question were all trading taken following the exact steps of the trading strategy?
It is not as simple as tracking down a trading strategy that claims to have a 70% success rate and then just running with it, chances are if you’ve experienced the trading game for a while you will know that it is never that straightforward.
To get e. g.
A Trading Strategy claims to have a success rate of 70 percent
However when you trade it, your success rate is merely forty percent
Exactly why is this?
Of course it could be that perhaps Trading Strategy A has no 70% success rate to get started with, but let’s say in this example that is truly does. So, what else will be the problem? The answer is you lack the other two important elements of a successful Forex Speculator, let’s look into the second one.
installment payments on your Trading Psychology
At this time there is one key part that influences every one trade you take… you. Your Trading Psychology very often is the big difference between an excellent trade and an unsuccessful one. You can be the best minded human being on the planet, however you are still human and as a person you have emotions.
Trading is a very highly charged emotional game, specially when you are trading large amounts of money, obviously your thoughts can eclipse and influence your thinking/behavior as a trader. At times you will subconsciously take a trade based after your emotions, whether ‘Revenge Trading’ or maybe being bare greedy, it is down to how strong your Trading Psychology.
You could have the best Trading Strategy on the world, but if you have a weak Trading Mindset it counts for nothing at all. Let’s have a look at some of the ways in which your thoughts may have an effect on your trading decisions.
Thoughts which hold you again from taking trade
Thoughts that entice you to take a trade
Thoughts that cloud your reasoning