Transition to using your own forex trading system
Prior to proceeding onward to utilizing the forex exchanging framework that you created or even the framework that you have bought from another person, it will be prudent to sort out the progress so as to guarantee that the procedure keeps on being actualized and to screen its prosperity effectively. Building up an exchanging framework is without a doubt a troublesome assignment, yet the most troublesome thing is to continue utilizing it without capitulating to enthusiastic pressure. Coming up next is a rundown of the means I prescribe to continue during the time spent changing to the new exchanging framework:
In the event that your system utilizes specialized markers straightforwardly or there are different instruments that help you screen passage/leave focuses, make certain to take note of these pointers down and add them to the outline. Try not to add whatever other pointers that are not utilized by the exchanging framework.
Record and open the time spans the framework is working on in the exchanging stage you are utilizing. Try not to endeavor to exchange on time periods that are unseemly to the idea of the framework.
Characterize section and leave conditions – these conditions should be very clear, regardless of whether they depend on pointers or something different. Try not to utilize whatever other apparatuses that are not suggested by the exchanging framework.
Prior to going into any exchange, figure the position size dependent on the danger proportion proper to your methodology. This progression will assist you with authorizing the principles of capital administration that will keep you from falling into the snare of overtrading or betting.
Follow your procedure and make a point to take note of all benefits and misfortunes. Be straightforward with yourself. On the off chance that you veer off marginally from the principle system now and again, attempt to record these cases so you can allude to them later.
Keep your frameworks running with no progressions for a lot of time. Attempt to find the qualities and shortcomings of this framework by social event enough insights to lead the assessment cycle.
During my numerous years in forex exchanging I have created many exchanging methodologies. The facts demonstrate that a large portion of these techniques were disappointments, however a significant number of them didn’t accept their open door to demonstrate their helpfulness because of my inability to utilize them appropriately. I additionally remember that the consistent change in the framework, and the endeavor to mislead myself by disregarding its signs, just as neglecting to compose measurements have added to the finish of more than one effective system.
Before moving to real money forex trading you will have to spend some time trading on a demo account. There is no disputing the precedence of this step whether you are using fundamental or technical analysis, price action, or any other method in trading forex. The same rule also applies even if you have previously traded in other financial markets or have taken previous performance tests on trading strategies. But the question that novice traders usually ask is the appropriate period of time to be spent in demo trading before moving on to real trading, and the answer they usually hear is “longer than you think.” Of course, the time required varies from person to person, but the question remains about the ideal period that you should spend in demo trading before you turn into a real trader.
If you are currently trading on a demo account, you may have already developed a certain method of trading that has proven useful one degree or another after taking past performance tests. If you have reached an advanced stage in this regard, you can now open an account with a Forex broker and start trading with virtual money for free before moving on to trading with real money. The length of your trial period depends in part on the timeframe you are trading on. Long-term traders, whose trades last several weeks or months, need to spend a longer period in demo trading compared to the period needed by a day trader who only holds positions for a few hours or a few days. But even if you are a day trader or use very short time periods, including scalping, you will still need to spend a period in demo trading of at least a few months before moving on to real trading.
Some might ask why is it necessary to spend this long even when trading on fast time frames. The answer is that the goal of demo trading is not limited to merely proving the efficacy of the trading method used and its ability to achieve continuous profits in the real market (even though this is really the main goal). It’s also about getting to know yourself as a trader better.
During demo trading you will encounter many unexpected situations which in turn will help you to better understand the general framework of the trading process. For example, you may discover that you will only be able to trade during certain days or hours – something that you may not have taken into account when taking back tests. You may also discover that you come home late and so tired that you will not be able to trade at night hours. Also, you may discover that you need to set up a complex system of alerts to help you choose the most suitable times for trading. There are a lot of reasons why demo trading is more complicated, but it is definitely a better opportunity to learn about the difficulties of real trading, during which you will be exposed to a greater degree of stress and emotional pressure.
It is necessary to strive to solve the largest number of problems that may come your way in Forex trading during the trial period in order to avoid making costly mistakes if you are surprised by them in the stage.