There are various ways of trading system and we can learn, a variety of indicators we can find and a variety of analysis we can get easily, but how come there are still many who have experienced failure in this business?
The charge indicators will not wrong and not a trading technique is wrong, but the main fault is a major factor in the failure of the trading is because traders are sure to make the concept (planing) trading are clear, then what is meant by the concept of Trading?
The concept of Trading in question here is the “rules trading that will serve as a reference in his daily transaction” before we decided to do business in Forex Trading you specify in advance what our goals and how much profit target that we want to achieve?
When we already have the goals and targets that have been set then make such trading concept. The following is an example of the concept of Trading:
Suppose our trading Objective is gaining additional income and set a profit of 40% of the value of our investments each month and big funds that will be allocated is $1000. With the provisions of each Open Position you set Margin:
-risk of 1% or (Any open positions that we do can hold floathing 1000 pip)
Thus the concept of trading the monthly can we create is as follows:
-the value of an investment: $1000
-40% profit Target: $400
-Target daily profit:
Monthly Target/20 days)? $ 400/20 days = $20 per day.
Calculation by making above we have have a purpose and concept trading clear where before we making transactions we already set target daily to be achieved profit was reaching $ 20 each day.
After we know retargets profit of $20 we live determine large 16,066 to be used.With large risk 1 % hold open positions every conditionsare floathing to 1000 pips and calculation his 16,066 is as follows:
Huge Lot: (investment grade/1000pips) = value per PIP
($1000/1000 pips ) = $1 per pips
Does that mean we should establish large lot which has a value of $ 1 per his pips, so when we trade, we'll set a great lot of 0.1 Lot every open position. (Lot size adjusted with each broker)
By making the above calculation concepts you already have rules every trading transaction every day will do him. So the underlying trading we should create when it will do the transactions are as follows:
-Use a lot of 0.1 Lot every Open Position will do
-Set Profit Target by 20 pips
(* When to reach 20 pips in heavy flavor we can divide into 2 x transactions per day so that a defined profit target to 10 pips per Open positions)
Now we have to have a clear concept of Trading and could be used as a foundation for good Money Management trading early for us.
Once we have a clear runway, a new next step we have to specify the trading system, is determining what you need to do to achieve the profit target as many as 20 pips per day.
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