A plan helps you decide what, when and how much to trade.

We are going to look at how to build a trading plan or strategy, because without a plan, traders may expose themselves to excessive risk or fail to implement appropriate risk management measures.

Some rules to be followed:

  • Education
  • Types of analysis
  • Timeframes
  • Types of strategy
  • Trade entry - exit
  • Risk management
  • Day Trading
  • Scalpers
  • Long term trading

1. Education

Whether you’re just starting out in the markets or looking for a new perspective, our Fxgrow Seminars will help you into what it takes to be successful as a trader, through knowledge and awareness. And to succeed in the world of trading, it is essential to have an education especially in technical analysis.

2. Understanding technical analysis

Technical analysis involves using price and indicators to analyze market direction. Technical analysis helps you identify possible entry and exit points for any currencies or commodities.

3. Understanding fundamental analysis

A fundamental analyst takes a look at key events that could affect a specific currency’s strength or weakness. These include political and economic data as well as natural disasters.

4. Timeframes

The time frame is very essential as the time factor should be considered very important in trading. As a day trader you need to watch the markets very closely and swill spend all day watching market price action. But as a position trader, you will hold trades for several days.

5. Types of strategy

  • Day Trading
  • Scalpers
  • Long term trading

6. Choosing entry and exit points

Forex and Futures traders are exposed to trading risks. That’s why understanding price action is key to determining when you place your trades and when you exit a position. You should look for exit points before taking a buy signal. Analyze where you can place a profit target.

7. Risk management

The market is volatile and the bigger your potential gain, the higher the risk. There are many risk management tools are available to traders. Never use more than 20% from your capital/balance. Also using risk management strategy through diversification, by opening positions for multiple currencies pairs, metals and indices… This way, if one experiences a sudden drop, other markets that experience a stronger move can help compensate for your losses.

Stay updated on market trends, economic news, and new trading techniques by attending seminars and webinars with Fxgrow financial company and follow reputable financial news sources, and interact with experienced traders to enhance your knowledge and skills.

About FxGrow

The brokerage offers a wide range of online trading services, including over 60 forex pairs, and a robust basket of Cryptocurrencies, indices, futures, and commodities. This includes ECN trading across the MT5 platform, the most advanced trading module available on the market today.

Headquartered in Cyprus, FxGrow was founded in 2008 and has since grown exponentially to service retail and institutional clients in more than 100 countries. In 2012, FxGrow LTD, a Growell capital limited brand name, became authorized by the Cyprus Securities and Exchange Commission (CYSEC) with CIF license number 214/13 and governed by MiFID.