The first step: trading only on major currency pairs and gold
Try trading on major currency pairs are popular including the cross-rate, as well as the commodity gold, among others: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/CAD, USD/JPY, EUR/JPY, GBP/JPY, AUD/JPY and the XAU/USD. You don’t have to analyze 20 currency pairs or more. If there is a significant movement in the market will usually look at the price action of the tenth pair. The ninth gold currency pairs and they also include the popular among traders.
second step: trading on just the daily time frame
The daily Time frame is one of the popular. Many analysts and observers use chart daily in providing analysis and prediction. The daily Time frame gives a clearer picture of the market, unlike the lower time frame tends to be a lot of noise and the error signal. In addition to the daily time frame is more clear in describing the movement of the market price so as to improve the capability of analysis in the long term or short term. Price action on the daily chart are more reflective of market sentiment in General.
third Step: identify a clear trading signals with a simple criteria
The signal is determined based on your trading strategy. Try to make a simple and obvious strategy, avoid using a lot of technical indicators that seemed complex and difficult to analyze. Preferred indicator of importance, especially the trend and momentum indicators.
An easy way to improve the performance of forex – do you have a trading plan which is updated on a regular basis every time it entered the market, or just open a trading chart at random and try to find opportunities for entry without a logical reason? A clear plan will help you find the ” road map ” for achieving the objectives. Without a plan you will have difficulty in doing any work, especially in forex trading. In the absence of clear instructions about what you want to do for a simple job, it usually will cause confusion and tends to cause failure. Instead a simple plans can often resolve complex work which impressed.
|An easy way to improve the performance of forex|
fourth Step: apply money management
Plan and apply money management by determining the risk per trade, lot size and the risk/reward ratio. Big risk per trade is measured by the value of the money, not with the pip, and is usually determined in percentage from the capital or balance in our trading account every opens a position. The popular applied is 2% of the balance. Then specify the size of the lot size per trade or position sizing. With great risk, position sizing in the value of money will always be the same regardless of the stop loss (in PIPs) that you specify.
In order that maximum results are obtained in the long term, the risk/reward ratio should be set greater than 1: 1. Usually between 1: 1 to 1: 2, but you have to be realistic and objective according to market conditions at that time. Trading strategies and money management is a key component in the trading plan to run simultaneously. Money management will work well only if we control and sure on trading strategies that we use to produce a consistent profit in the long run.
Step five: keep a journal for evaluation
Make sure you have worked according to plan by making trading trading journal as a means of evaluation. Without the continuous evaluation and routine you will not know your performance in trading. The evaluation is needed in order to improve or even improve the performance of your trading.