Forex Trading Information

What Is a Trading Strategy Based On? — Trading Basics

Sun, 23 Feb 2020 14:12

A trading system is based on 

1. Sentimental analysis.
2. Fundamental analysis.
3. Technical analysis.

Sentiemental analysis involves trying to find out the sentiment of the traders in the market. This is more psychological approach to the market and needs experience to find out the next move in the market. However, this method lacks solid rules to be followed. Fundamental analysis invovles studying the fundamental factors like GDP, inflation, interest rates,...

What does a Trading Strategy Consist of? — Trading Basics

Sun, 23 Feb 2020 14:10

A trading strategy consists of three key decisions to be taken for any single trade.

1. When to open a position:
A precise entry point or a entry criteria for opening a position.
2. When to close a profitable position:
You need to decide your take-profit level for your winning trade. This is needed to maximze your profit for a winning trade.
3. When to close a losing position:
The level that you wish to close a losing trade, when the market

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Risk Management Rules — Trading Basics

Sun, 23 Feb 2020 13:58

Before learning about risk management rules, you need to understand what risk means in the context of financial trading. Risk is the potential of bad outcome, which includes

1. Losing money
2. Underperformance of assets

Hence, you need rules that define your risk management. This video talks about three main rules that make risk management.

1. Use of stop-loss:
Traders should know when to exit

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