What it Takes to Start is very much interconnected with the forex routine.
1. Market analysis is the hardest of the trader’s tasks. It means command of market forecasting tools, application of fundamental and technical analysis. The result of the market situation analysis is the decision on trading tactics and definition of entering the market/leaving it or waiting.
2. The decision to start trading depends on the market analysis and the received market signals. Opening a new position is one of the hardest and most critical market decisions for every trader. Since now there is no turning back. Your investment will make you richer or will be lost.
3. Trade monitoring. Cautious monitoring of the trade signals, trading practice and experience is one of the hardest tasks for a trader. It’s hard psychologically since the market signs and behavior may sometimes be misleading and controversial. Elder claims that “Being eager to always be right on the market may cost you too much”. Any individual’s experience plays the most critical role in this question.
4. The decision to leave the market may be as well painful. It is the most important trading process phase since it decides whether your trade will be successful or you will be left with nothing. Once you get a signal to leave the market, you should do it straight away, no matter what you think or what your intuition is saying, no matter you have already lost or won. Surely, you may choose one of the tactics encouraging to leave the market only once you have won. Yet, this strategy is very cost-demanding. It may mean that you will be adding more and more investments during a single trade.
Many market specialists and analysts pay much attention to the moment of entering the market while the others claim that the most important question is when to leave. We tend to think that it’s not about what is more important: entering the market or leaving it. Yet, the most importance is the balanced decisions, well thought over and almost automated. Once the 4th point is complete, we turn back to the point number 1. And since now our analysis will be including the data based on the recent trade as well. And at this time not only the loosing positions should be considered, but the winning s well
