Autochartist trading signals is a list of the most relevant and promising trading ideas from all detected by the Autochartist graphical analyzer. Each signal is represented by a specific currency pair, a graphical model found and the most likely direction of further price movement. Moreover, on the graph of each idea, you will be offered a specific goal that the analyzed asset can achieve in the very near future.
Money Management is a special concept, to which it was decided to devote a whole lesson. Being one of the integral parts of effective trading, Money Management has always been aimed at minimizing the risk of significant losses.
How does it work?
In fact, Money Management gives an answer to the most frequent question that arises for every trader before opening a trading position, how much money should be put at risk? Agree, this is true - before opening a deal, no matter what instrument, we ask ourselves how much it is worth entering the market, thereby determining the amount of collateral.
Technical analysis is a method of forecasting prices based on information about market quotations, volume and open interest. The main of the three components is the price, the study of which by technical analysis methods is most convenient, since price information is publicly available and has a long history.
Technical analysis differs from other types of research also in that it is based on mathematical and statistical, rather than economic calculations.
You've probably already wondered what makes investors make this or that decision? They can't constantly try their luck, relying on chance and lucky fate. To be honest, despite the fact that luck has always been an integral part of any decision, first of all, traders are guided by the analysis of the current market state, to which we propose to proceed.
There are two main ways to assess the current market situation: technically and fundamentally. Technical analysis is aimed at studying the past price dynamics of any asset of interest to predict its future behavior. Fundamental analysis does not study history and does not try to predict future dynamics from the past. On the contrary, it analyzes those economic, social and political conditions that determine the ratio of supply and demand for financial market assets.
Before proceeding to the presentation of the material of this lesson, I would like to note its exceptional importance, since margin trading has always caused the greatest number of questions. Understanding the essence of margin trading is another necessary step towards a successful trading future. And if you approach the development of this lesson with special care, you can be sure that your formation as a professional speculator in the financial markets will be almost over.
Most novice traders do not realize that their mistakes in trading are not unique. Trading mistakes are common to all beginners and even professional traders, they always have psychological roots, and are part of human nature and psyche.
Professional and experienced traders differ from beginners in that they can identify and thus minimize their influence. Mistakes in trading can be divided into two large sections: mistakes originating in the trading strategy itself and a more serious type of mistakes is neglect of an already run—in and working trading strategy or emotional mistakes — mistakes of discipline. If the first type of mistakes is eliminated by studying the market and bringing the strategy to perfection, then the second type of mistakes always leads to over-trading, and is eliminated by working on yourself. One way or another, these classes are interconnected, and in practice these errors always work together.
Why do very few traders succeed in the Forex market, while most traders fail? There is no definite answer to this question, but there are several things that will bring you one step closer to the desired result and, of course, increase your chances of success.
The main purpose of this article is to guide you through some important aspects of Forex trading. I'm not going to tell you what to do or how best to do it, I'm going to tell you what to avoid. Sometimes it is enough to identify the main aspects that prevent a trader from succeeding and avoid them.
To date, there are a huge number of various indicators that help traders in forex trading. But there is a category of traders who work without using technical analysis indicators. The reasons may be different - someone prefers to use calculations of third-party scripts, someone believes that the indicators interfere with the normal operation of the terminal.
Trading without the use of indicators is possible for several variants of strategies, however, this does not mean that it completely excludes the use of technical analysis of the market.
Technical analysis can be carried out manually, or trading can be carried out according to slightly different principles.
Only beginners can hope for break-even forex trading. Profit and loss on forex can be said to be a single whole. It is impossible to trade only profitably or only unprofitably, but it is possible and necessary to balance the ratio of profit and loss.
Often one profitable transaction is followed by several unprofitable ones, but the main thing here is not the number of transactions, but the overall financial result.
The key to successful forex trading is competent capital and risk management. The bottom line is that as soon as there are signs indicating an erroneous entry into the market, the transaction should be closed. And when confirming the correct opening of a position, it is necessary to hold the transaction until maximum profit is obtained.
Many novice traders think that the main thing in trading is opening and maintaining trades, but they do not consider such a moment as the psychological aspects of trading important. This leads to the fact that draining the deposit, traders generally refuse to trade on forex.
However, no one is immune from losses, even major financial figures such as George Soros, whose maximum losses in 1998 amounted to $ 2 billion!
Often, the thirst for profit clouds the mind, thereby preventing an objective analysis of failures, and this can lead to a deplorable financial result. To avoid repeating mistakes, you can search for causes and work on errors.