Determinants of Success in the World Trading

Determinants of Success in the World Trading - Success in the world of trading is something that is dreamed of by many novice traders, one of them is to use the indicator "magic". We have many different types of indicators found that almost everything is an indicator of a profitable claim by the owner. Basically, all the indicators have advantages and disadvantages of each. Of the various types of indicators we can create a strategy or trading system.

According to John J. Murphy, an expert in the field of financial trading in his book said that in the preparation of a trading system is not enough just to use the analysis analyzes price though it is an important aspect and is a crucial point in trading. Another important success factor in world trade in terms of factor analysis is trading tactics and money management are often forgotten. Keep in mind that no single trading system that can be deemed complete without the three factors.

Success in the World Trading: 3 Determinants
1. The first factor is the Price Forecasting, ie a process to analyze the direction in which the price / trend will move. Note that this is the beginning of an important process and a crucial point of decision making in trading. This process also determine what steps we will take either buy (if the trend looks bullish) and vice versa sell (if the trend looks bearish).

2. Trading Tactics or timing, as more specific answers regarding the entry and exit points. Time is also a crucial one in the financial markets due to the low margin presyaratan generated by high leverage does not provide many opportunities for traders to make mistakes. Even though a fundamentalist trader to memprkecil fault factors still have to use technical tools to determine the best time and determine the level of entry and exit.

3. Money Management, covers the overall asset allocation. Point-point money management encompasses all things like, diversification of assets, how much money could diresikokan, how far our stop loss level, the risk to reward ratio, what emotion do after a profit or loss, and even more than that money management also determines the way we transact if the way be aggressive or conservative trading.

An easy way to summarize the three factors above is that Price Forecasting (price analysis) notify the trader about what to do (buy or sell). Then Trading Tactics (Time) helps the trader to decide when to entry or exit. Last Money Mangement in response to how many assets that we can use to our commitment in the market.

Hopefully helpful, Happy Trading