Simplicity - Secret of Trading

WikiFX Analysis (23 Dec.) - Eight secrets traders should know:

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1. Trading has little to do with market analyses since the basis of trading strategies is pretty much the same.

2. Open a position only when “expectation”, what you trade, is in line with the market.

3. Trading breakouts is the most effective way to open a position.

4. Trading rules: open positions on a consistent basis, keep to simple trading rules, place stop-loss depends on personal risk tolerance, and close positions and stop profits on reasonable grounds.

5. A stop-loss based on support and resistance levels works best.

6. Dont give too much weight to the subjective market analyses.

7. Control yourself in the uncontrollable market, especially in one that is out of your knowledge.

8. Trade with the trend. The trading process usually is: mastering the market and patterns - expecting - confirming expectations - opening a position - setting a stop loss - adding or subtracting a position - closing a position. Market dynamics are always fluctuating, thus traders should give reasonable reactions accordingly.