Every foreign exchange trader will develop his own trading strategy to trade, so what does a complete trading strategy include? What is a good foreign exchange trading strategy? Yuhui International Network today will give you answers one by one, and talk to you about how to develop foreign exchange trading strategies.
First of all, a complete foreign exchange trading strategy should include such aspects as single direction, capital planning, trading plan, and stop loss and profit setting. The trading strategy should be systematized and integrated, and affect the whole body. Every part should not be ignored. Next, we will explain each part in detail.
One-way traders should first consider the direction of the trend, including short-term and medium-to-long-term trends. Then carry out the operational layout, combined with the technical analysis to find the best entry point. After determining the direction of the order, the trader must make an overall financial plan. Under normal circumstances, priority should be given to the proportion of funds used for operations. Under normal circumstances, the funds invested by traders should not exceed one third of the total funds. When it comes to financial planning, remember not to throw all your money.
In terms of trading plans, traders need to plan both offense and defense. This can be combined with the settings of stop loss and take profit, because the trading plan is based on the trader’s trading goals. In the choice of stop loss, traders need a higher proportion and a higher proportion of funds. If you take profit, you can set it based on your own trading goals and market conditions.