In the GKFX webinar "The Trading Sessions - How successful traders trade" on November 23, 2017, speaker Martin Chmaj presented a trading strategy for trading with forex, stocks and indices in front. This requires basic knowledge of trend building. Therefore, "The Trading Sessions - How Successful Traders Act" deals first with the most important trend phases. Based on this, Chmaj presents a simple trading approach and presents the management of a trade using sample trades. Finally, the topic Risk management is dealt with.
Strategies define conditions
A trading strategy is about a set of rules for trading in securities, forex or indices to develop. There are manual and automatically executed trading strategies. A manual strategy consists of a few simple conditions and instructions, while automatic trading strategies can also be very complex due to the use of computer programs. Trading strategies are usually based on an analysis from the area of fundamental analysis or technical analysis with charts or indicators. This is how traders find entry and exit points for a trade.
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Effective risk management
At A good trading strategy requires effective and consistent risk management. This should fit the overall strategy. A wrong choice can make the whole strategy unprofitable. Risk management (also called money management) is a hedging strategy. With suitable financial instruments and measures , traders protect their investments against negative market developments and thus limit a possible loss. However, profits can also be lost.
In order to be able to adapt personal risk management, it is important to correctly assess your own risk tolerance. If a trader tends to be afraid of taking risks, it is based on the least loss in a trade. Risk-taking traders want to achieve the highest possible profits.
Measures to hedge
With risky investments, it is possible to choose a smaller position size. You can also control the risk with tools such as a stop-loss order. This comes into force when the price of a security or currency has reached or falls below a predetermined threshold. For special securities that are subject to fluctuations, the stop loss should be set more generously and the position size adjusted accordingly.
Trading against or with the trend
Traders often opt for Strategy in which they act either with the trend or against the trend. Anyone who chooses a cyclical strategy goes with the trend and wants to participate in an existing trend. In this case, the trader always acts in the direction of the trend. With trend-following trading approaches you always want to get into existing price trends. If the trend does not continue as expected, traders exit a trade.
Traders who work with a countercyclical strategy trade against the trend. In this case, you want to participate in a trend reversal and have to wait for the right entry point for a trade. You keep an eye on the trend until a opposite development becomes visible and then you start in the opposite direction of the trend.
Orientate according to cycles or patterns
With cycles, traders assume that the price will move in cycles. Anyone who makes the assumption that the same pattern is repeated over and over again in the event of price movements on the market is acting according to patterns. It is assumed here that market participants always behave the same in the same situations.
Successful trading with strategy
Every successful trader needs a strategy. However, this can only be found if you invest time in developing your strategy. In order to find your own trading strategy, a trader should first ask himself what he wants to achieve with the trading. The objective also depends on whether you are dealing with a short, medium or long-term investment horizon.
A well thought-out strategy helps to Finding the best time to open a trade. It is also easier to estimate when a trade should be closed. A trading strategy should always first be tested via a demo account with his broker. Traders who use a strategy can make trading decisions more easily.
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Knowledge of markets
The second task is then to find out about markets and financial instruments. You can only trade successfully if you know the functionality of the products you are trading and the risks of the product. It also helps traders identify which financial instruments and markets they prefer. In addition, knowledge of the different analysis methods is necessary. Brokers such as GKFX also provide a lot of training material in addition to webinars.
Observe markets and adjust strategy
In addition, a good strategy can be used to find out in which market or Trend phase one is particularly successful. In order for a trading strategy to be successful in the long term, you should always watch the markets and adjust your strategy if necessary. Traders also learn over time which indicators are important to them. In addition, effective risk management is part of every good strategy. Here, traders should ask themselves the question of which amount you do not want to lose under any circumstances and set a stop loss accordingly.
Broker with a lot of experience
GKFX became Founded in Great Britain in 2009 as a broker for Forex and CFDs for private and institutional investors. The headquarters of GKFX Financial Services Ltd. Located in London The German branch is based in the financial metropolis of Frankfurt am Main. The broker is also active in other countries. In addition to the regulation by the British FCA, BaFin also monitors the broker.
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Training courses for beginners and advanced
when founding the The founders already had 20 years of expertise in the financial market. GKFX is able to create the best conditions for experienced traders. The wide range of training courses is explicitly aimed at beginners and experienced traders. While beginners deal with the basics of trading, experienced traders learn more about the markets and different trading strategies.
Trading with many underlying assets
traders can choose from numerous underlyings from stocks to indices in CFD trading. GKFX lists all costs transparently and comprehensibly. With trading currencies there are more than 50 currency pairs available, which can be traded from 0.6 pips. Even with small positions, traders can start trading here and also secure their positions with a stop-loss order.
Popular trading platform
In addition to the MetaTrader 4, GKFX offers a suitable extension to the popular trading platform. Traders can also use the GKFX Webtrader or an app. In addition to real-time courses, the trading platform also offers many tools for technical analysis. If you want to act automatically, you can use the Expert Advisor. To test the trading platform first, the 30-day demo account is ideal. Customer service will answer questions about the platform and trading.
In the webinar "The Trading Sessions - How Successful Traders Act" with GKFX expert Martin Chmaj on November 23, 2017 for a successful trading strategy for forex, stocks and indices. Knowledge of trend building and trend phases is first imparted before the management of a trade is illustrated using sample trades. It also deals with the important issue of risk management.
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