Activtrades – Three pillars of successful trading Many people see trading in the financial markets on active trades as intimidating and complicated, as there is no single strategy for successful trading. However, by combining strong technical analysis with an effective form of implementation, traders can ensure that their success rate improves significantly. Much like other skill sets good Forex trading originates from a combination of hard work and talent. Here are three of the most important aspects of this type of trading. Before you being to trade, it’s essential to recognize how valuable thorough preparation is. The first step is to align your temperament and personal financial goals with the markets and instruments to which you can relate. For instance, if you have experience in the retail market, then you might want to consider trading in retail stocks instead of something like oil futures. The time frame is another important aspect of trading on Activtrades. This refers to the type of trading which complements your temperament. Although many traders don’t realise it, personality plays an important role in successful trading. Those who enjoy trading in a five minute chart are probably not big risk takers, as this position means that you are not exposed to overnight loss risks. However those who tend to go for weekly charts are more likely to revel in the risk factor, as they are willing to see a number of days go contrary to their current position. After you have chosen a suitable time frame, it’s important to find a clear and consistent methodology. For instance, some traders might like to sell resistance and buy support. Others might like to buy or sell breakouts. Others still might prefer to trade using indicators like crossovers and MACD. Once you have settled on one methodology, you need to test it to see if it proves to be consistently successful. If the system appears to be reliable more than half of the time, you will have that edge over other traders.
Activ trades – Stock market of Brussels (Photo credit: Wikipedia)
Choosing a suitable financial instrument is another important part of successful trading. Erratic instruments will inevitably make it more difficult to produce a successful system. Therefore, traders must test out their system using several different instruments, so that they can determine which instrument works best with their chosen methodology. For instance, if you were trading the GBP/USD currency pair on the Forex market on Activ Trades, you might find that resistance levels and Fibonacci support will be more reliable with this particular instrument than with others. You should also ensure that you test several kinds of time frames to find one which best matches your current trading system. Successful trading is all about experimenting and finding out which systems, time frames and instruments work well together.
Published on Jul 10, 2012
Before you being to trade, it’s essential to recognize how valuable thorough preparation is. The first step is to align your temperament and...