Improve Your Trading Success –
There are many ways to improve your trading success, but none of them are as simple as learning to trade Forex like the pros. As I mentioned in my last Trading post, I had to modify many of my trading decisions based on what the Pros were doing. That’s why I made a promise to myself that once I was trading Forex like the pros I would share with you the secrets they use to profit consistently. So here it is, in a nutshell, the 4 simple things the Pros use to improve their trading success. Hopefully, by the time you finish reading this, you will understand why they are so successful.
The most Important Tool Traders Use to Analyze Forex Charts Is Technical Analysis
Which is nothing more than figuring out what the underlying trend lines for a particular currency look like? The truth is the technical analysis done by many traders including me is totally worthless. It’s just too hard to do in reality. You can use trendlines to identify possible future trends, but they are useless as indicators of what the future price of a currency might be. In reality, there is no way to predict the price of a currency; it only gets possible after many months or years of continuous trading.
The Reason Why So Many Traders Complain
A lack of trading success is because they have no idea how to develop a trading plan or even keep it together. I don’t blame them, after all trying to set up a trading plan and stick to it is almost impossible. That’s why I make it a point to work with any new prospects that I meet. I help them develop a trading plan and help them follow it. Once they are able to develop a trading plan, I use candlesticks and other charting tools to confirm my trading ideas.
So if you want to improve your trading success, you need to learn to use technical analysis correctly. It’s very simple really if you can break down a Forex trendline into two separate trendlines, using candlestick charts you can then draw a simple line through the points representing the lows and highs for that particular currency. If you do this with any kind of consistency for at least a month, you will start to get very good at spotting trendlines.
The Nice Thing about Using Trendlines with Candlesticks
That you can also take your trade list of high probability trades and spread them out over time. This makes it much easier to spot a reversal and profit from it rather than having to watch many traders work their way through the low probability high-value trades. Another great thing about using trendlines is that if you can find a trend line with over forty points (it doesn’t have to be that high) it makes it far easier to set up an entry with the candlestick chart.
So now that you know how to develop a trend line with candlestick charts, what else can you do to improve your trading success? Here for rocketalgo well, one important thing is to always keep your exit strategy to a very simple line. You don’t want to go for high levels of resistance or support, or anything that’s going to cause you to get emotionally involved in a trade. The idea here is that you’re taking the trades that you think are going to bring you the absolute highest profits. That doesn’t mean that you should never enter or exit a trade, but if you have an exit strategy you will quickly eliminate those emotions and focus on only the profit potential of that trade.
Another Very Important Thing to Try
And do to improve your trading success is to always make sure that you’re able to predict where a trendline might break down. It’s not enough just to be able to see it on a chart; you have to be able to take action based on your research. That’s why candlestick charts are so great because they allow you to quickly identify where a trendline might break down. It’s a lot easier to predict when the breakdown will occur than it is to predict where it will break down.
Finally, always be very conservative when trading, and always make sure that you’re not over-trading on a consistent basis. Sometimes people will go into a trade with the expectation that they’re going to make a ton of money, and when they reach their goal they throw all of their money into the trading account and quit. Don’t make this mistake! Always only risk what you can afford to lose, and always only risk your money when you’re fairly sure that you’re going to make money so must visit here.
