In this article, we will explain how to build your own Trading Strategy for Forex and Cryptocurrencies markets
To develop a strategy for your trading you must follow some of the points and foundations on which to base your trading strategy.
Learning and market knowledge
You are a trader What you should learn To start trading correctly, there are several questions you must find answered before trading.
If they are answered correctly, You have created the first correct rule to create a trading strategy.
- What is the main engine of the market?
- What are the risks to you as a trader in this market?
Answering these questions are the most important step to build your own Trading Strategy for Forex & Cryptocurrencies.
- How did this market arise?
- What are the main factors affecting the liquidity of this market?
- What types of investments are in the market?
Risk management for an investment portfolio? What are the fundamentals that make you analyze the market before making a decision?
What are the points on which the market depends on going up and down?
All these questions and more must find the correct answer before starting the process of trading, knowledge of the market and learn secrets is the key point to reach success.
fundamental analysis and technical analysis
The market is subject to two types of analysis:
The economic or fundamental analysis is the study of all the factors that affect the economic movement of the market and what is the most important news that occurs in the world with regard to the money market (cryptocurrencies, Forex, stocks, and indicators).
Monitor the market situation economically and politically, and study the level of liquidity flowing in the market during the period of work.
to determine after which the movement of the market is up or down.
Technical Analysis: This analysis is based on the chart (the chart of the price action of a currency or stock).
The analysis is carried out separately by a single currency analyzer such as BTCUSD- EURUSD- DowJones. Technical analysis is based on the analytical schools of the most important school of waveform analysis – harmonic – supply and demand
As a trader, you should learn the basics of technical analysis:
So that when you have sufficient experience to determine the direction of market movement.
after the analysis, you can identify the transaction you want to invest in.
Determine the transaction
- Market analysis in general.
- Analyzing currency pairs separately is a complete technical analysis through which opportunities are gained.
- Identify appropriate entry points in the transaction through the chart.
- Set goals and stop loss.
- The task of this feature is to fully analyze the owner’s head and to develop investment plans based on liquidity
- Determine the size of the transaction and the percentage of risk acceptance.
- The remaining amount of the guarantee to ensure that your account will not lose and that it bears a falling market more than expected.
- Risk management determines the type of transactions that are short or long term.
Specify an entry point, targets, and stop-loss point
After choosing the deal you wish to enter, you must set a suitable entry point either at the current price or if you are buying or selling from another point waiting for the currency to arrive.
Goals must be phased in the goal of the first profit rate in which 10-15% of the second goal 30-50 and the third goal 100-200%.
This is the simplest example of goal setting. Of course, ratios changes depends on the type of trading strategy you want.
Stop Loss Points:
This point is determined by two factors: the first is risk management and the second is the chart. The stop loss is placed sensitively.
which is always the point at the break-even point.
We recommend that the stop of your loss of daily speculative transactions does not exceed 5-10% and long-term transactions between 25-35%.
In the trading world, the trader is subject to 30% market analysis 3% market movement and a 40% liquidity flow is a psychological factor experienced by the trader if you enter the transaction.
The psychological factors experienced by a trader are difficult and cause anxiety sometimes, so you should follow the following things:
- Full commitment to the transaction in terms of the entry point, goals and stop loss.
- Not to distract the mind and catch up with more than one analyst, for one reason that the technical and fundamental analysis are schools and each analyst has a certain point of view in the market.
- Do not think about losing.
- Smile for loss because the loss is temporary.
The appropriate trading time
There are always times in the market suitable and not suitable for trading.
In the case of political differences between countries and conflicts.
The world is threatened by war is strictly forbidden to trade, and if trading, know that you are trading on a risk exceeding 90% and this ratio is contrary to the laws of risk management.
Build your own Trading Strategy for Forex & Cryptocurrencies is your way to build your own wealth and profitable trade
The economic problems in the big and great countries will be deliberating on either the currency of the country in which there are problems or in the general form and trading at these times on the risk of 50%.
One more point, Trading during news time is not a good way to trade. The important news will have an impact on the market movement.
Therefore you must wait and watch what happened in the market and then enter.
If you are a risk-averse investor at that moment at a risk above 30%.
The way the Stock Exchange Club to manage the recommendations and transactions in the site
Away from the analysis and all the above before and determine only the pattern of application of the transaction on the stock exchange site.
When the deal is put up, the deal is made up of one or two entry points. At least 3 goals. One stop-loss point.
- Read the analysis well, understand all the things related to the deal from your point of view and then enter.
- The first stage is the commitment to deal with the letter. And put stop loss before anything.
- The second stage when achieving the first goal and often the first goal between 15-20%
- automatic close the half of the contract entered and put a stop loss on your entry point.
- The third stage when you achieve the second goal also closes half of the remaining contract and put the stop loss from the entry point also.
- The fourth stage of achieving the last goal closes the deal immediately on the existing profit