Archive for category Currency Trading

The Forex Trader. Part 2

Posted by Loans Guru in Currency Trading on June 7th, 2011

Working conditions of traders

Many people are bribed by simplicity of work in the market Forex, but it doesn’t accept weakness, laziness and sloppiness. The trader constantly should study behavior of the market, should be organized and attentive. He should work constantly over himself; constantly improve the art to trade. Without it only casual achievements which, most likely, won’t repeat in the future are possible. The trader is the person who constantly struggles with fear, greed and temptation. The one, who already traded on real money, will understand what it means.

The person trading on financial market, always is under a psychological press which presses on mentality with such force that not everyone will sustain this pressure. The emotional component in trade is so great that if not to accept any measures on a protection of from this component it is possible to pay with money and even health. There are many methods to reduce an emotional component or even in general to get rid of it. One of them is to use mechanic trading system.

Mechanic trading system for the aid to the trader.

The mechanic trading system allows excluding emotions during accepting of important decisions. The mechanic trading system will never fluctuate at closing of the unprofitable transaction. Development and testing of mechanic trading system is led in the quiet conditions that allow thinking over all to trifles. All it allows the trader to keep the health and money at trade on real to the account. Because actions of the trader using mechanic trading system are reduced only to start of system and tracing of correctness of its work, and all the rest are done by system. On this site you will find set of ideas of trade, set of various strategy, and also examples of mechanic trading systems which you can use for trade.

Different traders – different lines of thought to trade.

At each participant of the auctions the approach to trade and the rules is different One trade in a day – intraday traders. They can make to ten transactions a day. Others – investors, as a rule, make some transactions for a year. But all of them can be broken into four groups differing on a method of the analysis of a trading situation in the market conditionally.

Traders using the technical analysis.

The first group includes those who uses technical market research, thus use technical indicators, the candle analysis, the wave analysis or graphical constructions (figure) on price schedules, and also artificial intelligence methods. It is, probably, the most popular group. And it isn’t surprising, since there is a large quantity of the accessible information under the technical analysis and any beginner can learn this kind of the analysis.

The basic idea on which the technical analysis – studying and the analysis of behavior of the price by means of technical indicators is under construction, by means of construction of graphical figures on a drawing of the price and other methods of the analysis. Some consider that the market repeats, and the behavior of the price in the future can be predicted, studying its behavior in the past.

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The Forex Trader. Final Part

Posted by Loans Guru in Currency Trading on June 7th, 2011

Traders who are using fundamental analysis.

The second group includes those who use fundamental analysis. It as it seems to me, the most difficult kind of market research which demands analytical mentality. For fundamental analysis carrying out it is required to analyze a considerable quantity of the information and the trader, in this case, acts in a role of an analyst. The basic idea of fundamental analysis is to predict influence of those or other events in the world on behavior of the price in the future. The exit of financial news, reports, natural cataclysms, catastrophic crashes and other phenomena definitely influence behavior of financial tools.

Traders using own methods of the analysis.

The third group includes those who uses own methods of the analysis, and also those who simply trade the market as in a casino, using the probability theory as the index for fulfillment of transactions in the market. Such traders simply play, thus, usually, use artful system of exhibiting of warrants and support of open positions. Often such traders use any version of Martingale (doubling of the size of the rate after loss, in hope that the prize all the same will occur sooner or later). Personally I carry myself to the third group since I use own methods of the analysis the blessing point-of-sale terminal Metatrader4 comprises huge possibilities on research of the market Forex. And even, if, in the terminal something isn’t present, it always can be programmed by means of built in programming language MQL4.

In the fourth group it is possible to carry people who trade on-intuition, without using any means of the analysis. It, as a rule, successful traders with a huge length of service, it is enough for them to look only at the price schedule to estimate that occurs in the market and how from this to get profit. But such thing it is not enough. The solution of their capability so quickly to estimate a situation in the market, is very simple – the experience acquired as a result of daily trade on financial markets. That they don’t use any kind of the analysis, actually it isn’t true, simple at them it turns out automatically or even subconsciously, owing to a trade wide experience. It is called “to feel the market”.

Division of all participants of the auctions into groups conditionally enough and subjectively because always there are those who simultaneously use some methods of the analysis of a market situation. Many, also, have a little trading simultaneously, trade systems that allows covering losses from trade on one system at the expense of profit on another.

Portrait of the trader.

The trader is, as a rule, comprehensively developed person with a wide range of interests. He always benefits even by unprofitable transactions, constantly works over himself – improves his skills. He/she is the person who constantly learns to manage the emotions and feelings, and establishes trade rules and always accurately follows them.

People who took the decision to participate in forex trading must start from learning the basics of this market to make sure you do not have problems with this industry.

There is another option – you can hire experienced traders to managed your trading account – read more about forex investment here. Also make sure to search for the info in a good forex book.

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