Trading Strategy From Another Perspective "part 2"
2017-07-18 04:38 pm | No Views : 443
In the first part of the trading strategy, we talked about the correct concept of strategy and it should include everything related to the trading process, not just the indicators that will work on it, and you should add to your strategy how to deal with the psychological side.
More accurate trading strategy details from another perspective
In this section we will discuss the details of the elements used to build the trading strategy, which we briefly discussed in Part One.
Why we define trading times in our trading strategy?When you work in the Forex market, many traders neglect the time management aspect. The market is decentralized and allows you to trade 24 hours a day. Today it is possible to operate an hour and the last 10 hours.
The risk of not setting specific times for trading strategyThe risk of not setting a time to work in the case of sharp loss and high profit, as the trader when he is suffering a severe loss, feels involuntary in the desire to retaliate against the market, and the psychological pressure that makes him unable to make correct decisions, causing more losses .
In the case of high profit, the trader feels that he is the king of the market and possesses vanity and greed. This also puts him under psychological pressure of another kind, which is a great joy, a situation that is also inappropriate for decision making and results in wrong decisions regretted by the owner later.
The importance of determining the working times in your trading strategyIt may come to your mind that setting time is not important to solve the above problem. It is possible that the number of hours for a trader is 5 hours, and a loss in the first working hour will have 4 hours of trading , But this is not true.
When we talk about a trader who knows very well when he is working and has a schedule of work times, it is very difficult not to set a risk ratio and a daily goal that does not exceed it, which is the tool that we will talk about in the third part of the trading strategy series from another perspective.
But let us now talk about the importance of setting times for work. It is advantageous if we do not talk about psychological equilibrium. It gives you the opportunity to practice your social life normally, without being the machine to trade most of the day. Since you will set trading times you will be familiar with economic data. To avoid the risks of trading when issued, and to follow quietly.
Tips for determining business hours in a trading strategy
- Consider the economic agenda to be aware of the days that have important economic data such as the interest rate decision to stay away from the market when it is issued.
- The working time is separate from the time of study and research, since work in Forex and money markets needs to be studied continuously and is considered part of the work.
- For example, if you are working on Scalping, it is not reasonable to operate at high liquidity. If you are working in the long term, you only need daily closures, and so on.
Forex trading times Why can not some technical analysts succeed in trading?
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