10 tips of top traders

Đây là tài liệu được tổng hợp từ các trader hàng đầu, bao gồm 10 chỉ dẫn giúp giao dịch thành công trên thị trường Forex. Ebook được trình bày rất đẹp, câu văn xúc tích rõ ràng. Sau đây là nội dung Ebook When it comes to forex, the difference between traders and hobbyists comes down to discipline. Successful traders have habits they follow to keep them in the market longer, improve their performance, and take on the volatility of the day. Good habits and discipline grow with experience, but you should already begin building them from the start. This guide explains the basic habits of professional forex traders so that you can apply them from the very first trade. They will increase your chances of success and help you identify ways to improve, as you continue to trade the market. Every day, you have choices: what to trade, how large to make each trade, and when to cut your losses. These are the basic pieces of information you need before you can place a single trade. Theres no need to leave these up to guesswork. These ten tips will give you the information you need to start planning your trades. This book has my list of the ten things that the best traders know. Read it and follow it. Youll make money in the forex market.

10 tips

to evolve your trading

Evolve into a Professional Trader in 10 easy steps

10 Tips To Evolve Your Trading

01

Ten SecreTS

of Top TraderS

When it comes to forex, the difference between

traders and hobbyists comes down to discipline

Successful traders have habits they follow to

keep them in the market longer, improve their

performance, and take on the volatility of the day.

Good habits and discipline grow with experience,

but you should already begin building them from

the start This guide explains the basic habits of

professional forex traders so that you can apply

them from the very first trade They will increase

your chances of success and help you identify ways

to improve, as you continue to trade the market

This book has my list of the ten things that the best traders know Use it to trade with Markets com, and see your trading improve.

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Every day, you have choices: what

to trade, how large to make each trade, and when to cut your losses These are the basic pieces

of information you need before you can place a single trade There's no need to leave these

up to guesswork These ten tips will give you the information you need to start planning your trades

Money

ManageMenT

10 Tips To Evolve Your Trading

03

Pairs that are volatile are great

for traders; the more the prices

move, the more opportunities

there are to make profitable

trades If a price moves up and

down a lot during the day, then

there are more opportunities to

buy and to sell Volatility moves

region by region; at the time

this is being written, European

currencies have had the most

day-to-day price changes

Traders also need pairs that are

liquid A pair needs a steady

volume of transactions during

the day to make it easy to

1 chooSe a Trading pair:

The first decision to make in forex is figuring out what to trade.

get in and get out when your trading strategy calls for it Pairs involving such major currencies

as the U.S Dollar, Japanese Yen, and Great Britain Pound are extremely liquid; more exotic currencies are less liquid and are not a good choice for most beginners

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Beyond that, there

are a few other

„ When will you be trading? Look for currencies in markets that are open when you are trading If your trading hours match daytime in Europe, then concentrate

on European pairs If you're working when both North American and European markets are open, look into those pairs

„ Look for similar markets Many currencies trade in similar patterns or react to similar news For example, the Australian Dollar and the Japanese Yen both react to economic growth in the Pacific, especially China As you move beyond your initial pair, you can lever your research and-experience with a pair that has some similar characteristics

10 Tips To Evolve Your Trading

05

By setting limits on your

trade size, you'll have funds

for other opportunities, and

you'll cushion the effects of

your losses There are many

different money-management

systems out there, and you can

find some on the Markets.com

platform One that's relatively

simple to learn and use is the

fixed fractional system

To use the fixed fractional in

forex, simply determine what

percentage of your account

you want to risk on each trade

Many traders find that 10

percent is a good place to start

If your account has $10,000 in

it, then you would want each

trade to be $1000

2 chooSe

The Size of

each Trade:

You may have the urge to use

your full account for each trade

Don't, even if you are placing

only one trade at a time

The key to using the fixed fractional system is to use the same fraction to adjust the trade size as the account size grows If the $1,000 trade doubles, your account would then be $11,000, so the next trade should be $1,100 If you were to lose all of that $1,000 trade, then your account balance would be $9,000,

so the next trade should be

$900 – or the lot size that will put as much of that money to work as possible Markets.com's money management features can calculate trade size for you automatically

Top traders know that they only have so much time and attention They place only as many trades as they can stay on top of–and respond to–at once Start with one trade at a time, and add trades as you develop a feel for your patience and your attention span

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(in many pairs, a pip is a 1/100 of

a penny), leverage helps you get more return from every trade

If you want to trade 10 percent

of a $10,000 account, then your committed capital for each trade

is $1,000 but your trade itself can

be significantly larger With 100:1 leverage, you could place a trade with a total value of $100,000 The other $99,000 would be provided

by Markets.com

Here's the best part: you can't lose $99,000! Your position will automatically be closed if your loss equals the total value of your account, and you are not responsible for additional losses

Many beginning traders start with low leverage and move up as they gain experience This gives them more time to develop a winning strategy, although at the expense

of small profits

Money management will help

you capitalize on your winning

trades, while limiting the

damage that one unsuccessful

trade can do It keeps you in the

market and prevents a busted

account It is the single most

important factor in successful

long-term trading.

Leverage is the percentage of

each trade that has to be in your

account, and it is a key part of

money management in forex

Because the returns are so small

10 Tips To Evolve Your Trading

07

Although Markets.com automatically limits your losses to your account size, you probably want to keep your losses well below that Top traders use stop-loss orders to keep their losses manageable

When you place your order, specify the number of pips you are willing to lose

Suppose you are trading the Canadian Dollar and the US Dollar If your trade

$100,000 US on CAD/USD at 9795 using 100:1 leverage, then each pip is worth $10 to you Your trade is betting that the Canadian Dollar becomes more valuable than the US Dollar If you want to make sure you don't lose more than $100 – 10% of your $1000 trade exposure - enter your order with

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And yes, currency markets can move too fast for you to respond A rebellion, a financial crisis, or a scandal can come out and force exchange rates into a free-fall A stop-loss will preserve your capital when it counts.

Otherwise, your account will dwindle

down to nothing in no time You can

choose to sell on your own when a

trade hits a predetermined limit, but

a stop-loss order forces discipline,

and it works fast when the market

may be moving too quickly for you

to respond Stop loss orders prevent

you from second-guessing yourself

– and the markets They allow you

to take your loss and move on to

the next trade Wishing and hoping

that the trade will work out after all

won't let you do that

10 Tips To Evolve Your Trading

to trade and how to trade, followed with a good analysis

of how those trades performed

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Trading strategies range from simple to complex As you trade, you'll develop more experience

in reading the market to refine what you do Markets.com offers advanced e-books and video tutorials that can help you spot complicated patterns and act on them You have to start somewhere, though

Most currency trading strategies fall into one of three

categories: trend following, news, and carry trade

(The Markets.com eBook on technical analysis expands on these strategies in more depth.)

4 idenTify

a baSic

STraTegy

for Trading:

10 Tips To Evolve Your Trading

11

For example:

A trader, interested in the US Dollar relative to the British Pound, wants to place a trade and is looking for ways to make money as the pound become less valuable relative to the dollar He buys the USDGPB pair at 6333 after seeing a series of consecutive downticks - He will hold the trade until he sees two upticks in a row, his trading session ends, or a stop-loss of 10% the investment is hit

following

Trend following looks at price patterns to see where a currency pair is likely to trade next One of the simplest trends, momentum, is based on the assumption that an asset that is increasing in value will continue to increase until a news event comes along to change it, while an asset that is decreasing

in value will continue to decrease

A trader watches for two or more trades in trend, and then places

a trade with a target price that assumes the trend will continue He sets a time limit, a price target, and also, a maximum allowable loss

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Technical analysis can reveal more accurate trend patterns, but they all draw on the underlying principle that certain patterns will continue until something happens to change the trend.

It looks for the inflection point

that changes the trend.

In general, the markets tend

to over-anticipate events They expect good news to be better than it is and bad news

to be worse And so, prices often rise (or fall, if the news is expected to be bad) in advance

of an announcement, then correct back to trend after the announcement is made

National governments set dates

in advance for announcements about inflation, unemployment, GDP growth, money supply, and trade figures, all of which affect exchange rates News traders can use this to construct profitable trades

10 Tips To Evolve Your Trading

13

As they develop technical analysis skills, traders can anticipate expectations and reactions from the charts, improving the precision of news trading Charts show supply and demand for a given currency pair, which gives an indication of the intensity and direction of expectations

Suppose the Japanese government is expected to release leading economic indicators at 5:00 am Greenwich Mean Time on the third Monday of - every month Market analysts are expecting positive numbers, which would increase the value of the Japanese Yen relative to the Australian Dollar You enter an order of 100,000 JPYAUD at 0128 with the plan to sell immediately after the news is released

or if a stop-loss of 0138 is reached.

For example:

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Trade Carry trade is a staple of currency trading

Traders sell currencies in markets with a low interest rate and buy currencies in markets with a high one This is generally

a longer-term trade than trend following

or news trading, one that plays out over weeks instead of hours It's a nice way to diversify your trading portfolio and take advantage of longer-term trends For example: If interest rates are low in the

US and high in Europe, the trade would

be EURUSD You enter a trade of 1.2769, looking for appreciation to 1.3000 You plan to hold the trade for two weeks or until a stop-loss of 1.2669 is hit

10 Tips To Evolve Your Trading

15

They use charts showing the movement of both to help determine the best times to buy and sell Once you have determined

a basic trading strategy, you can use it to plan, place, and evaluate your trades This information can

be used to refine your strategy and improve performance; it will keep you from reckless behavior that leads to ruin Top traders analyze their trades to improve their strategies and results

Many traders work with

both interest rate and

currency futures in order

to get the maximum value

of the carry trade.

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Top traders don't enter an order

until they know what their

strategy will be.

They determine what pairs they

will trade, what entry and exit

prices they hope to get, and

they act accordingly When they

hit their target, they sell If the

trade moves against them, they

sell Some careful attention to

these details will result in better

Make your plan, and then work

on it For example, suppose you want to work a momentum strategy based on the US Dollar/Canadian Dollar pair You look for two two-pip movements in the same direction You see this happen on the upside, so you enter your trade for $100,000 USD/CAD at 1.0207 with a stop loss of 20 percent Your signal to exit is two downticks in succession

or the end of your trading day, whichever comes first

Write down your trade so that you stick to it

10 Tips To Evolve Your Trading

„ The target price and the trade rationale

„ The date and time that the trade was closed

„ The performance of the trade

„ Any notes on what happened that could be applied to the next trade

What should your trade diary include? At a minimum, you should record:

The place to write down your

trade plan - and its results - is your

trade diary It can be as simple

as a notebook and a pen or it

can be a complex spreadsheet

The format of the diary is less

important than the habit of

planning and evaluating your

trading

Each week, go back through

your diary and review your

performance Look for what

worked, what didn't, and why

Maybe you notice that

news-based trades work better for you

than momentum, and maybe

you have a better mindset for momentum than for interest rates The notes you have can be used to help you plan better trades and concentrate

on methods that work for the pairs you trade It can point you to areas where you could benefit from more research and training, and it can help you refine your trading strategies

Some traders go so far as to develop a business plan, much like any small business owner would, to play their strategy, their investments in their trading, and they long-term goals from it

10 Tips To Evolve Your Trading

19

It's human nature to over-value recent experience Behavioral finance research has shown that people who recently had an investment that did well tend

to over-estimate their total performance, while people who had an investment that did poorly tend to under-estimate their total performance For a trader, though, this is dangerous Those who over-estimate performance may become overly confident and make mistakes, while those who under-estimate their performance may give up on a winning strategy

The information in the trading diary can be used to figure out what the overall percentage performance is for your trades, what percentage of trades work

as planned and what percentage don't, and which trading strategies work better than others

7 TracK perforMance:

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That data can give you a strong

sense of what you are doing

right so that you can build on

your strengths and become a

better trader.

The percentage performance

number is straightforward: how

much did your trades increase?

You find that by taking the

ending value, dividing it by

the beginning value, and

subtracting 1

For example,

you commit $1000 of your

capital at 100:1 leverage to buy

the Mexican Peso at MXNUSD

.0725; at $100,000, his gives you

1,379,310 pesos You exit the

trade at MXN/USD 0735, which

gives you $101,379.31

In other words, the total value

of the trade increased, by

$1379.31, from $100,000, to

$101,379.31 On a percentage basis, this trade increased by 1,382,630/1,379,370 – 1 = 0.24%

However, you had committed only $1000.00 of your own capital; the other $99,000 was obtained through leverage Subtract that from your proceeds for an ending value