In the previous article we talked One more time about systematic trading results. Now let’s revise what do these notions mean: Trend analysis, The 2/1 Rule, The 5 Percent rule. Experience shows that the most successful traders are those who apply risks management and trend analysis for trading decision making. It’s strongly advised to use stop losses and limit orders. It’s amazing how much can a trader achieve if they use the trading system correctly and forget about their emotions.
The basic professional trading approaches are as follows:
• No emotions. Never let your negative feelings or joy prevent you from getting rich.
• Do your risk management. Decide what will the applicable risk scale be and stick to it.
• Do the statistics research. Analyze your trading results in order to understand whether your current trading system is competitive or not. Discover the opportunities of using another systems.
• Design your own systems. Use the technical analysis indicators in order to work out and create your own systems.
• Be disciplined. Strictly follow the rules and the strategies you select.
If you want to choose the “right” trading company, use the one that offers you the largest quantity of tools and provides access to all the tools online. It’s important if your access to all of these tools is possible while using the only one capital pool. It allows you not to open separate accounts for working with a large variety of instruments (account for forex trading only, or for futures or stocks trading only). Why is it so important? Because the currency market is risky, and, at the same time, very promising. In order to succeed, you may need to diversify your trading, to do investments hedging, to use traditional stock tools and complementary ones or the derivatives.
