FOREX SYSTEMS AND STRATEGIES

REAL STRATEGIES

General assumptions for trading plan/strategy:

RATIO – basically it is relation between potential gains and losses, it should be at least close to 3:1 rate. Forex trading course covers that aspect of trading. Practically it means, that if you open a position with 10 pip stop loss, you are looking to gain 30 pips at your account. It also means, that if for three executed trades only one is profitable – you are still on top.

IMPARTIALITY – looking at the market from third party perspective. Practically – forex trading is based on signals, no assumptions following. It means that we do not follow the market like flag on the wind, you keep doing what you are suppoused to do based on signal analysis. Practically when you are looking for days to enter the market with long positions (you are really focused on longs), it is necessary to switch your view quickly when short signals in this term will arive. During my daily analysis I'm trying to stay impartial and keep the focus on both possible sides of the forex market. For more - you can take a look at my forex tutorial

TREND – trend following. Whenever you are trading on 1 minute or 4 hour chart, there is short or long term trend involved. If we are trading instruments that have to move in order to profit from them, trend is critical. Examples of that - please check my forex school. Sometimes it is not so simple as it looks – it's worth to mention that the same instrument can have different trend on every different time chart.

- size of stop loss accepted

- potential profit

- how long it is comfortable to keep the position

- what time chart to use

- size of positions

- style of trading: trend trading, break trading, swing trading

- particular technics and situations you will use at the market