How to manage trade

Managing open positions is the most difficult task facing the trader. The risk can arise at any time and make a good profit in a nasty loss. Too often, we have jumps in a good position, only to see it fail because of poor management of traffic. This is especially true for newcomers who think that the market - this is a game of "Guess - not

Experienced players spend some time to cope with confusing trading day. This multi-task, which requires considerable effort. But the reward is worth it, because it would allow traders to keep away from danger and protect their capital. To begin the long road to effective management of trade, the following are 20 ways how to make this a great idea into a stable profit.

1. Decide beforehand how you want to actively manage open positions. Professionals watching every tick and act on short-term fluctuations. Those who sell time, watch the morning news, and exploring everything that they need. Your own activity should be located somewhere between these two approaches.

2. Wisely choose your playing field. Keep track of weekly price bars, if you sell on a long-term basis; day pubs, if you - selling on the movement and the 60-minute bars, if you play tight in the intraday markets.

3. Highlight a special strategy to deal with items that are carried over into the next day. Learn where to stay in the market, and when the "desert ship" before the release of key reports and news.

4. Select the time and money for unexpected opportunities. New ideas arise all the time, and require your attention. Build schedule so that they deal with prospects quickly and efficiently.

5. Align your position in line with current market conditions. The general condition, the external impact and the unexpected volatility affect the success or failure of your transactions.

6. Traded on fluctuations up and down in rhythm with the market. In most cases, the market should be three-day cycle for trading on the movement and the 21-day cycle for positional trading. Find a place in the fluctuations and their use in favor of those who act against the market.

7. Have an effective plan for the first and last hours of the trading day. Inexperienced traders should be particularly careful at this time, but professionals may use this time for most of its decisions.

8. Study the trends during the day. Markets have a tendency to develop trend in limited periods of time, while trade was the dominant side for the rest of the day.

9. Select a set of trading tools and indicators, with whom you feel comfortable and work with them. Learn to correctly interpret the conflicting information, rather than look for new more sophisticated indicator.

10. Indicators to track and monitor their short-term cycles. Many indicators have their own lives, and they will help you if you learn to recognize them.

11. Keep one eye on their positions, and the other on the parallel market-based instruments. When your marketing tool for moving more rapidly than other tools, it should continue this behavior, and more. This becomes very important when there are significant movements in the markets.

12. Keep track of round numbers in the market. Sometimes the support and resistance of round numbers can be more important than the former maxima or minima.

13. Looking for breakthroughs that have developed over several days, the band. This tells you which way is more likely to develop market-based instruments, if it is or it topchetsya on the ground.

14. Examine the price GEPy and share all of their categories. Then decide for yourself a strategy that you'll use the next time you run into one of the GEPa.

15. Recognize when you are wrong and must withdraw from the market. Find the price at which the transaction will be bankrupt and not expect that the market changes, if the price level reached. The movement could be false, or the beginning of something bigger.

16. Do not try sverhanalizirovatsvoi position. Let each of the show itself. If nothing intelligible is not the case, then close the position and go on to the next transaction.

17. Look for early warning signals movement against your position or to confirm that you have done correctly.

18. Deal in small lots, if you are a beginner in this game. This will allow you to gain experience in a relatively low fee when you make a mistake. Beginners should concentrate on studying how to trade and not worry about making money.

19. Increase the size of the position during the band wins, because your performance suggests a reduced risk. Reduce the size of the position during the downturn and wait when the "scattered clouds."

20. Build relationships with the opposing crowd. Your profit is rarely followed the direction of the crowd, so try to be ahead of her, whenever it is

www.hardrightedge.com