As it is known, trading in the Forex financial market is connected with lots of psychological difficulties which have the strongest effect on nervous system and prevent getting really productive results.
Detailed “instruction” for trade will help with such situation. In this important and useful document the most actual sections are reflected:
- Trading Rules in the Forex market.
- Analysis of quotations movement.
- Trading plan.
- Analysis of the concluded transactions.
- Other points which trader may need.
This section should include all possibilities and restrictions which are connected with the work with the specific broker or on the chosen trading platform. It is desirable to reflect in the first section the size of the deposit, the period during which you will trade, used working tools, StopLoss maximum value, the ratio of profit/risk, the maximum size of the loss for the entire period, actions of the player in case of loss of the fixed sum.
Analysis of quotations movement
The second section of your instruction should include step-by-step actions of the trader according to the forex trading strategies defined by him. Thus, it will be possible to develop detailed algorithm for every day and week in the course of the analysis of quotations movement. You can consider this section as a template which allows analyzing effectively a current situation in the market.
Conditions for entering the position are included into the trading plan. The trader should define the level, order of entry into the market, the size of a take-profit, stop-loss and the ratio of profit/loss.
Analysis of the concluded transactions
In spite of the fact that, most likely, the given section will be among the last ones in your instruction, it will definitely not be less important. It is possible to raise the level of professionalism only if you will periodically analyze own actions, revealing errors or successful actions in the market.
But there is one nuance when performing this section. Sometimes it could be impossible to estimate your work objectively. Therefore it is worth to use the help of more skilled investor or a trader. Find to yourself a good forex and cfd broker and the instructor and have close connection with them.
So, you have already understood a significant role of the instruction when trading in the Forex market.