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Discretionary trading means a trader is opening and closing trades by using their own discretion. They can use any of the trading styles listed above to create a strategy and then implement that strategy by placing each individual trade. The ...Read more
Discretionary trading means a trader is opening and closing trades by using their own discretion. They can use any of the trading styles listed above to create a strategy and then implement that strategy by placing each individual trade. The first challenge is creating a winning strategy to follow, but the second (and possibly more difficult) challenge is diligently following the strategy through thick and thin. The psychology of trading can wreak havoc on an otherwise profitable strategy if you break your own rules during crunch time.
Automated trading or algorithmic trading requires the same time and dedication to create a trading strategy as a discretionary trader, but then the trader automates the actual trading process. In other words, computer software opens and closes the trades on its own without needing the trader’s assistance. This has three main benefits. First, it saves the trader quite a bit of time since they no longer have to monitor the market as closely to input trades. Second, it takes the emotions out of trading by letting a computer open and close trades on your behalf. This means you are following your strategy to the letter and are not able to deviate. And third, automated strategies can trade 24 hours a day, 5 days a week giving your account the ability to take advantage of any opportunity that comes its way no matter the time of day.
Good trad ing!
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Both discretionary and automated trading have advantages. Discretionary trading gives traders flexibility to adapt to changing market conditions using experience and judgment. However, emotions such as fear and greed can affect decisions.Automated trading follows pre-programmed rules, removing emotiRead more
Both discretionary and automated trading have advantages. Discretionary trading gives traders flexibility to adapt to changing market conditions using experience and judgment. However, emotions such as fear and greed can affect decisions.
Automated trading follows pre-programmed rules, removing emotional bias and allowing trades to run continuously. It also saves time and ensures discipline. The best choice depends on the trader’s skills, goals, and experience. Many successful traders combine both approaches to maximize efficiency and control.
See lessDeciding what time frame we should use is mostly decided by how much time you have to devote to the market on a day-to-day basis. The more time you have each day to trade, the smaller the time frame you ...Read more
Deciding what time frame we should use is mostly decided by how much time you have to devote to the market on a day-to-day basis. The more time you have each day to trade, the smaller the time frame you could trade, but the choice is ultimately yours.
Short-Term trading generally means placing trades with the intention of closing out the position within the same day, also referred to as “Day Trading” or “Scalping” if trades are opened and closed very rapidly. Due to the speed at which trades are opened and closed, short-term traders use small time-frame charts (Hourly, 30min, 15min, 5min, 1min).
Medium-Term trades or “Swing Trades” typically are left open for a few hours up to a few days. Common time frames used for this type of trading are Daily, 4-hour and hourly charts.
Long-Term trading involves keeping trades open for days, weeks, months and possibly years. Weekly and Daily charts are popular choices for long term traders. If you are a part-time trader, it might be suitable to begin by trading long term trades that require less of your time.
For a more in-depth look at multiple time frames and how to integrate them properly, check out The Time Frames of Trading.
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We can define this by the words we have on each like Short-term trading it involves much shorter holding periods, which trading ranges from days to weeks, whereas long-term trading involves holding positions for months to years. It is for a longer period of time. Medium trading is on between the twoRead more
We can define this by the words we have on each like Short-term trading it involves much shorter holding periods, which trading ranges from days to weeks, whereas long-term trading involves holding positions for months to years. It is for a longer period of time. Medium trading is on between the two.
So short line is a short line. Daily lines and weekly lines are medium lines. Monthly lines and annual lines . So it up to an individual to choose.
See lessThis is one of the more simplistic parts of the trading plan, as this will often be dictated by the trading strategy (or strategies) itself. I want to make sure that I’ve written out the exact situation that I am ...Read more
This is one of the more simplistic parts of the trading plan, as this will often be dictated by the trading strategy (or strategies) itself. I want to make sure that I’ve written out the exact situation that I am looking for.
If I were using the ‘Model Strategy,’ that David and Tim had used in “When is the Best Time of Day to Trade Forex?”this section of the trading plan would read:
I’m looking to trade RSI crossovers between 2:00 PM EST and 6:00 AM EST
I want this to be as descriptive of the strategy as possible in this section.
The only thing you is by starting with a demo account to practice. study technical and fundamental analysis to understand price movements and market trends. develop a trading plan with clear entry, exit, and risk management rules. start small, using only capital that can be risked without financialRead more
The only thing you is by starting with a demo account to practice. study technical and fundamental analysis to understand price movements and market trends. develop a trading plan with clear entry, exit, and risk management rules. start small, using only capital that can be risked without financial strain. stay disciplined, avoiding emotional decisions driven by fear or greed. monitor trades and review performance regularly to learn from mistakes. continuous education and adapting to market changes are key to success.
See lessOnce again, this part of the plan can differ greatly from trader to trader depending on trading style, risk characteristics, and goals. Risk and Reward is extremely important to traders, and once again, Mr. David Rodriguez has accompanying evidence to help ...Read more
Once again, this part of the plan can differ greatly from trader to trader depending on trading style, risk characteristics, and goals.
Risk and Reward is extremely important to traders, and once again, Mr. David Rodriguez has accompanying evidence to help further illustrate this point.
In “What is the Number One Mistake Forex Traders Make?”
David and Tim arrive at the thesis statement that a minimum 1 to 1 ratio should always be used. This means that if I am risking 100 pips in a trade, I want to look for at least 100 pips as a gain. David continues, “for lower probability trades, such as trend trading strategies, a higher risk/reward ratio is recommended, such as 2:1, 3:1, or even 4:1.”
In the Money Management module of the On-Demand Video Course, we recommend a minimum of 2:1 or greater; meaning if I’m taking the same trade with 100 pips of risk as above, I’m looking for a minimum of 200 pips to the upside if I’m correct.
Read lessThe next step in the trading plan is – in my opinion – the most important part of the plan. This is where a trader’s risk parameters are set. There isn’t one answer to this question that is, across-the-board, better than ...Read more
The next step in the trading plan is – in my opinion – the most important part of the plan. This is where a trader’s risk parameters are set.
There isn’t one answer to this question that is, across-the-board, better than another. Once again, this part of the plan should be built around an individual trader’s goals, objectives, and risk tolerances.
For anyone looking for some help in setting this part of the plan, in the module for Money Management in the On-Demand Video Course, we propose a max of 5% at risk at any one point in time.
Traders also need to determine if that amount at risk is going to be on one trade, or many. If I risk 5% of my account on 5 ideas, that’s 25%. If I lose on all 5 of my ideas, I only have 75% of my account balance when I begin trading tomorrow.
I then need to make 33% just to get back to my previous break-even level!
Personally – I find that level of risk intolerable on a day-in and day-out basis as a trader. I want a maximum of 5% of my account at risk – across all of the ideas that I’m trading. That way, if I have an extremely bad day and lose on all of my trades I can come back with 95% of my account value tomorrow
Read lessThis is probably one of the most neglected parts of trading plans that I’ve seen. The FX Market is open 24 hours a day and many traders want to use this to their benefit. The fluid nature of price being ...Read more
This is probably one of the most neglected parts of trading plans that I’ve seen. The FX Market is open 24 hours a day and many traders want to use this to their benefit. The fluid nature of price being traded around the clock is a compelling prospect for traders, particularly those such as myself that came from other markets such as equities or commodities; markets in which gap risk can greatly influence a trading approach. Since FX is open 24 hours a day, there are fewer gaps simply because the market doesn’t close as often as most equities, futures, and commodities markets.
An important element of note is that the various trading sessions can exhibit different ‘characteristics,’ around the way that prices move.
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Showing some kindness to people is very important especially if you’re together.
Just by respecting others and your elders, don't interfere in something that's you're not involved in, just mind your business only and know the right things in your life, just focus on everything that you think is good and learn how manage your time as well in order accomplish your goals. DedicateRead more
Just by respecting others and your elders, don’t interfere in something that’s you’re not involved in, just mind your business only and know the right things in your life, just focus on everything that you think is good and learn how manage your time as well in order accomplish your goals. Dedicate your time and utilize it the way you it will benefit you.
See lessTraders who use the MACD indicator often are critical of the fact that it will signal an entry after the initial move has begun and therefore leave pips behind. As such, many traders wanting to enter a trade sooner dismiss ...Read more
Traders who use the MACD indicator often are critical of the fact that it will signal an entry after the initial move has begun and therefore leave pips behind. As such, many traders wanting to enter a trade sooner dismiss it as a “lagging” indicator.
In the case of the MACD indicator, the most widely used entry signal is when the MACD line crosses over the Signal Line in the direction of the Daily trend. Since these two lines are simply two moving averages, by their very nature the crossover will not occur until the move itself is under way. And, since that crossover is the entry signal, this will get you into the trade after the initial move has begun. Some traders prefer this method of entry as it offers more confirmation that the move is more likely to continue in that direction.
For more aggressive traders who are not interested in the additional confirmation and are simply looking for an early entry, they may prefer a less widely used entry signal based on the histogram bars.
As seen on the 1 hour chart of the EURUSD below, as soon as price action begins to move to the downside, the green histogram bars will begin to shorten. As soon as a bar does not close above the previous bar, that means that upside movement by price has subsided for that moment in time. An aggressive trader can use that as a signal to short the pair at that point.
Read lessDon’t stay always in one places, just put your efforts everyday in your life.
Don’t stay always in one places, just put your efforts everyday in your life.
Read lessMaking time to learn something is very important especially if you're youth and you wanted to get succeed in business or in your life as well. Learning something new it boost your efforts and capacity as well as your consistency. However, learning something new will make you to become a different frRead more
Making time to learn something is very important especially if you’re youth and you wanted to get succeed in business or in your life as well. Learning something new it boost your efforts and capacity as well as your consistency. However, learning something new will make you to become a different from others especially if you’re working in same place or industry. So as a young person should try to Learn something in your life.
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First and foremost, i believe when it comes to relationships, anyone going into it should be because they plan on thst relationship leading to marriage, in a situation where you have to end the relationship, i believe the right time to breakup is if you are in a toxic relationship. Such kind of relaRead more
First and foremost, i believe when it comes to relationships, anyone going into it should be because they plan on thst relationship leading to marriage, in a situation where you have to end the relationship, i believe the right time to breakup is if you are in a toxic relationship. Such kind of relationship is not healthy for you, so it is best to move on just to protect your mental health.
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