Saturday, January 28, 2017

The advantages of simplicity when trading

In our day to day life, in almost any environment, we tend to make things more complicated than strictly necessary and this can significantly affect the outcome of our actions, although many times we do not realize it. Something similar happens in trading. There are traders who spend day and night in front of their computer, they try hundreds of strategies, they follow all the analyzes and signals that are, they load as many indicators they occur to them in the graphs of their platform of trading, Others, instead, look for the Maximum simplicity and try to obtain benefits with the smallest possible headaches.

What are the advantages of simplicity when trading?

1. Simple strategies are the easiest to follow and optimize

Most beginners start by studying the graphs and incorporate the more indicators better trying to get the infallible input signal. The indicators generally give information too late to detect these input signals. Some indicators may be useful to be used as confirmation of another signal that you have detected but many may not be helpful and the combination of them may give us false or often contradictory signals.

Many professional traders use only Japanese candlestick charts to make their trading decisions. The price, represented with those Japanese candles, can give you more reliable samples of the direction you will take in the future. In this sense you can try to learn to follow the price, to locate key levels of supports, resistances and strong signals that can show you a continuation or a change of trend.

The more variables you use in your trading system the more complex it becomes to follow and especially to optimize. If you test a simple system and it does not give you good results you can try to modify certain aspects and see if it improves or you can discard it and look for another one. But if you use a complex system it is much more complicated to modify anything or to identify what is working and what is not.

2. Entering the market only with strong input signals can help you avoid mistakes

It is not usually convenient to try to get into all the market movements. More movements are not necessarily equivalent to more profits but more risk and generally more losses. A common mistake of the novice trader is to want to open many positions so as not to miss opportunities to make a profit. If you are disciplined and do not enter the market if you do not give a strong input signal based on your strategy it is easier for you to avoid unnecessary mistakes and losing positions.

On many occasions you will see that there are no opportunities that meet your entry requirements. In this case it is preferable that you close your trading platform and reopen it the next day. You must know how to wait and not be self-deceived that the conditions of entry are given when the signal is really not strong.

If when you are analyzing a possible entry opportunity you see that you doubt much, think that you may be entering the process of self-deception provoked by greed to propel you to operate. By taking only a few strong entry signals you can get more benefits than entering the market more often, yet keep in mind that you are always going to have to deal with losing trades, it is part of the game and you must know how to properly handle both winning trades Like the losers.

3. Larger time frames reduce your stress when operating

Trading platforms allow you to work with different time frames (also known as time frames) that generally range from 1 minute to 1 month. Many traders believe that they can get more benefits if they work with the shorter time frames since they generally generate more trading opportunities in less time. It is true that more opportunities can be given in these shorter time frames but also many more false input signals are formed and the market in the short term has a much more random behavior.

Working with larger time frames, such as daily, weekly or monthly, can be much less stressful as it requires you spend much less time in front of your computer. You can limit yourself to analyze the graphs a couple of times a day to detect new trading opportunities and monitor the evolution of the positions you have open and do nothing else until the next day.

4. The permanent control of your positions can be counterproductive

If you have made the decision to enter the market based on a strong input signal and you have defined from the outset your stop loss and your take profit, you should not need to constantly monitor Your positions. Fear can cause you to prematurely close a position when you see that it is not advancing to your favor when it is possible to do so if you give it enough time or also to close a position on benefits prematurely for fear of losing them without reaching the initial goal.

In order to be able to Learn about Forex market from your successes and mistakes you should do your initial analysis and let the position close when you reach your profit objective or because the loss limit you defined has been exceeded. In this way, regardless of the outcome, you can analyze it, see if you have been wrong or if you have been successful, if you have properly placed your stop loss and take profit at the correct distance, It is much simpler and at the same time it is practically impossible to build and Improve your own trading system if you are making changes without control continuously.

Tuesday, January 3, 2017

Forex Quick Start and Belajar Forex Bagi Pemula

First is Forex and belajar forex bagi pemula: The Forex or Forex market is the largest financial market in the world, with a volume of more than $ 1.5 trillion per day, in currency trading, unlike other financial markets, the Forex market does not have No physical location, no central exchange, it operates through an electronic network of banks, corporations and people who exchange one currency for another.

The Forex market, or foreign exchange, is all about money from around the world, which is bought, sold and traded. In Forex, anyone can buy and sell currencies and possibly get ahead in the end, by working with the foreign currency exchange, it is possible to buy the currency of a country, sell it and make a profit.

The reality is that the stock market and the currency market - although they are related - are different. The Forex market has a high liquidity, while the liquidity of the stock market is relatively low. This means, a lot more money changes hands every day. The forex market never closes, which contrasts with the stock market, and rates fluctuate constantly. Banks and brokers in spot Forex provide quotes 24 hours a day.

Another difference between the stock market and forex trading is that Forex trading has much greater influence than the stock market. When someone decides to invest in Forex you can get more profits. But investing in the forex market is a very risky business, and those who are not experienced or rushed can lose a lot of money.

There are a lot of terminology in Forex trading. Learning to trade in Forex can be tricky for the beginner. It is important to learn what currency symbols mean. The symbol for a currency pair will always be in the form of ABC / DEF. ABC / DEF is not a real currency pair, it is an example of a symbol for a currency pair. In this example, ABC is the currency symbol of one and DEF is the currency symbol of another country. USD / JPY stands for US dollar. Against the Japanese yen. It is important to understand what symbols mean. There are several books and websites dedicated to learning the Forex market.

To trade in Forex you have to choose a broker, or broker. Sliders are professionals when it comes to trading a currency and their experience is very valuable, especially for a novice investor. When choosing a broker you must take into account several aspects. It is recommended to choose solid corridors with low spreads. The spread, calculated in pips, is the difference between the price at which the currency can be bought and the price at which it can be sold at any point in time. Forex brokers do not charge commission, so this difference is how they make money. When choosing a broker, pay close attention to this information.

Unlike liquid securities brokers, currency brokers are generally tied to large banks or lending institutions because of the large amounts of capital required (the influence they need to provide). In addition, currency brokers must register with the Futures Commission Merchant (FCM) and be regulated by the Commodity Futures Trading Commission (CFTC). In short: when choosing a broker make sure it is backed by a trustworthy institution.

Another important resource when choosing a regulated broker is the tools it supplies. Do not settle for a currency broker who can not offer real-time charts, technical analysis tools and real-time news. Choose an agent that can offer you different types of accounts. Must offer demo accounts and standard accounts. This will allow you to choose an account that is most appropriate for your needs.