Transform Yourself into a Successful Forex Trader
Beginner Forex traders often opt-in to the Forex market without any prior knowledge about it. As a result, they seem to catch a merry-go-round cycle and repeat a futile process. They buy some irrelevant accounts. Then instead of understanding the market milieu, they leverage those accounts for massive profits.
Because of their blindness and incompetence in the exchange market, they fail. Most amateurs lose their enthusiasm here, and the other part stays and educate themselves with proper knowledge and see a little success.
This article is for those who are embarking on their trading journey or need a simple outline of the whole exchange market industry. The article has focused on the medium-term business strategy, as it serves the most for both beginner and professional traders.
Role of Medium Term
Many may astonish over the question like “how medium-term business offers more to beginners than short-term marketing.”
If you look deep in both the short- and long-term dealings, you will see that both types require a large amount of money. The former type needs it to spawn tremendous leverage, and the latter needs it to cover the business’s volatility. Only individuals with massive-net-worth and more considerable funds flourish with these types of trades. To get more info about a professional trader’s approach, you can visit Saxo broker. There you will find many post from the top traders in the United Kingdom which you can use to gain more knowledge about trading.
So medium-term businesses are the most suitable for beginner and intermediate traders. It does not require massive amounts and yields fair profit against medium risk thrown.
A Basic Structure
The structure discussed here focus on detecting situations where all technical signals direct to a single destination. These are the situations where the profit lies.
Trading Platform Selection
Lots of tools and software are in the market, and most of them serve a broker for a specific situation. We highly recommend the MetaTrader trading platform as it is an independent platform and comes in handy for diverse conditions. Like all the best trading gadgets, it also displays all three timeframes and plots EMA, SMA, RSI, and MACD.
Set up the Indicators
The more indicators you set to call a situation as an opportunity, the more reliable and the less frequent these opportunities will be. With fewer indicators set, more opportunities emerge, but they are less reliable. To determine indicators for a medium-term deal, you can follow the below model.
· Candlestick Chart (Minute-by-minute)
RSI – In between 13 to 15
MACD – Default
Stochastics – 15, 3, 3
· Candlestick Chart (Hourly)
EMA – 100, 10, 5
MACD – Default
· Candlestick Chart (Daily)
SMA – 100
Opening and Closing Points
A trader must set optimal entry and exit points for themselves. Both points should work in harmony with your timing with the direction of a trade. A solid understanding of some built-in trading concepts may help him the most. A bullish engulfing pattern when channels or trendlines breakout upwards, a positive turn in RSI and MACD is an excellent entry point. For a bearish movement entry point, channels will move downward, and RSI and MACD will show a negative divergence.
Whereas a great exit point is just before a resistant area at basic Fibonacci levels like fans, arcs Etc.
Money and Risk Management
In a fluctuating marketplace like Forex, a concrete money and risk management strategy is obligatory for sipping out a profit and survival.
Figuring out when to use stop-loss and take-profit is the key to leverage both management skills.
With keeping on being patient, forming a strong strategy, and modifying it for every turn and movement in the industry, anyone can earn money. Eager traders should be meticulous with their way in the Forex industry. Being wise and cautious when stepping into the market is a pre-requisite to succeeding in the exchange business.
Following this well-structured framework will put you on the path of the successful Forex traders.