Trading Tactics Forex

Finally - we got to the main. Until then we are more - less thoroughly studied the structure and organization of the currency market Forex, the technique to perform trading operations (transactions), terminology (by the way, say that the terminology - 50% of any science). If there were any - that "white spots", I assure you, this is not so much and does not interfere with your successful work.

In this, my approach is very different from the present, when most of the time devoted to technical analysis, a little bit - a fundamental, almost - almost - the rules of work with the trader, and - in the battle. Strategies described or very little, or nothing at all. We had a long and carefully studied the technical issues of trade. Now we'd slowly with the main question - how did - did trade on the Forex, and not only did not lose their money, but also reliably and systematically make profits. Tech. analysis and fundamental analysis, I do suggest that you examine yourself. Moreover, I contend that it is better not study those. analysis. Those basic tools that you really need in the construction and use of profitable strategies, we will study in the context of this section. There is some confusion in the interpretation of the concepts of strategy and tactics. The terms of these war, so we will not pay any attention.

TRATEGY - Science and art of warfare. The general plan of warfare and military operations. (New Dictionary of Russian language).

STRATEGY train. Greek. science of war, the doctrine of the best location and use of all military forces and resources. (Dictionary Dal). Thus, in the annex to the trade term strategy is applicable to the general concepts, such as capital management strategy, etc.

TACTICS - 1. The set of methods and means to achieve smb. its intended purpose. 2. Line smb. behavior. (New Dictionary of Russian language)

I'd add that the tactic is part of the strategy.

The topic is very extensive, and I'm not sure that will clearly and systematically disclose, to disrupt all of the shelves. Often the narrative buden be somewhat chaotic appearance, will return to the already traversed. Here, I look forward to your participation. Please direct questions, argue with me, express their opinions - all of this I'll use for a more complete disclosure of this important topic. Well, let's start maybe ...

Xto say "smart

In preparation for writing this article series, I examined all the available literature and concluded that the systematic presentation of the issues of trade policies in none of the author not. There are descriptions of some copyright policies, some - and some are - foggy. This is a 3 screen Elder, Profiniti Wilson (alligators), pipsovye strategy Zhvakolyuka. This is, perhaps, and all. We, of course, all of them look, but would like more, understanding the principles of design strategies. A less coherent arguments about the general principles of trade, I found in a textbook on ArgoTrade. This section of the textbook I liked so much that he decided to just quote it here, unchanged and clippings, in order not to violate copyright.

How it all - still make successful trading in the market Forex? Traders joke that the whole secret is enclosed in a simple phrase - buy cheap, sell expensive. Although, as applied to financial markets, more correctly, the phrase sounds like this - to buy expensive, sell more expensive, sell cheap and buy cheaper. In order to implement these simple and clear principles, must learn to predict the direction and magnitude of currency fluctuations.

However, the authors, it appears that the main thing is not so much successful prediction as correct strategy trade. Because the forecast is probabilistic in nature, it is possible, for example, assume that a trader with a probability of 0.6 is not mistaken in the projections (which is quite realistic). This means a very rough approximation, that of the 10 transactions it will hold 6 with a profit, and 4 - with a loss. Not bad. But in order to realize this requires good planning within the chosen trading strategy, strict discipline, self-control. Otherwise, the trader, as often happens when there is no clear strategy, a few times slowly earns, and then takes a huge loss, absorbing its profits, and even burn your entire deposit.

Strategy, or trading system, each generates for himself. This can not be taught, moreover, blindly following someone else's recommendations is likely to collapse. So your strategy you will have to produce their own, using the trading tactics discussed below.

Strategies are divided by time. General comment - the more long-term strategy, so they are less profitable but less risky, require less psychological stress, greater balance Deposit / Margin, and vice versa.

Long-term - when a trader holds an open attitude from a few days to a month or more. This is the least risky strategy that does not require the adoption of instant solutions, the psychological burden is low. However, requires a very large deposit of at least 5 -10 times larger than Margin (the amount required to open and maintain the position). In Margin of 500 dollars for such work should be from 5000. It is necessary to withstand the speculative extreme fluctuation, reaching an average of 500 - 1000 points. A second drawback is that to pay for the transfer position. ArgoTrade, unlike most companies, a position transfer money from the client are not taken. Hold the position indefinitely. Strange, but the more long-term strategy, the less it is attractive in the eyes of novice traders. This was a fatal mistake! We strongly recommend that trade is a long-term. Moreover, you have a specific need to consider carefully the fundamental and technical analysis, as well as by these terms, which opened in any currency in any direction by setting the Take Profit points 100 - 200, within a month - the two you get this Profit with very high probability . Replenished over time, their knowledge, gaining skills in forecasting, you can reliably and break even trade, getting up to 100% profit in a year or more. In this case all the time you can not devote the intense monitoring schedules, and life. After all, we do not live to work, and sometimes work to live!

Medium-term strategy - from one day to one week. True all the above, optimal for beginners who are unable (or unwilling) to wait long. A potentially more profitable and somewhat risky strategy, but with the ratio of Deposit / Margin 5 - 10 virtually risk-free.

Short position - from one hour to days. Highly profitable (potentially) a strategy for experienced traders.

Short-range strategy, the most attractive for beginners and rapidly leads them to a complete collapse. Most often, it looks like. Tempted by short-term fluctuations of a few points, the trader begins to "catch points", on 1 - 5. Several times it is successfully resolved, paragraphs 20 - 30 he earns. Then there is a movement against his position and begin to grow rapidly damages. Since this work requires a very rapid decisions under conditions of very great psychological pressure that is available only to a very experienced trader, the rookie is doing nothing but watching spellbound as his deposit rapidly decreases until it is destroyed (avtozakrytiya).

Unfortunately, with small deposits can only work short-term, and therefore the beginning trader, which has generally low financial capacity, almost always loses.

1.5. Trade strategy.

1.5.1. The simplest and most frequent - Stop Loss - Take Profit position (stop costs - taking profits).

The gist is that the trader is a plan that reflects the opening price, the levels of Stop Loss and Take Profit, opens a position in this direction, in accordance with the plan either puts orders, or by tracking quotes, closes his position in accordance with the plan. It should be noted that the Stop Loss should comply strictly according to plan, scheduled to take a loss clearly and decisively. But with the capture of profit targets, if there are reasonable grounds for believing that the price will go even further, can and should be no hurry. Remember that the person does not tend to risk when he has at least a small profit, and he is inclined to take risks in a losing position. It is vitally important to act contrary to overcome itself. Do not take chances when growing losses. If the price went against you, it will go up as long as does not destroy the deposit. And as soon as you close with a small profit, the price will still be dozens of items in the same direction and will be very offended. All this has been repeatedly tested by life, and do not repeat the mistakes of others.

And one more remark. Never attempt to trade on the extreme values, although this is very tempting. Make sure that the price turned and safely "go", then open and wait patiently, when there are credible signals a reversal. Suppose you take 1 / 3 of all traffic, but best protect themselves from large losses.

(It should be noted that these professionals just traded on the extreme values, on the borders of the price channel. But they put very tight Stop Loss orders. This tactic allows even a few feet to take actuated by a decent profit as well as in the case of real turn profit reaches the width of the channel (and for the euro, for example, is 300 - 500 points!). In general, do not believe anyone looking for their strategy. Think!