Just becoming a successful trader is not an easy task. Initially, you need to develop a trading strategy and your own trading system, according to which you will implement these same operations. As a rule, the primary trading system, adapted to itself, will never give out a profit to the trader in 100%. Disadvantages exist even in the most ideal structures.To get a quality product that optimally contributes to successful trading in the foreign exchange market, you will need not only to sort through all available tools and analysis tools, but also to test their effectiveness in various market conditions. Time and careful analysis will allow you to adapt something to your needs, and from something and completely give up.
In reality, you can say this: as many traders - as many trading systems. However, in addition to the individual characteristics of trading systems, there are general principles for their formation and they are accepted by all traders without exception.
1) Trend trading systems
Traders are guided by the duration of the current market trend. These systems are based on the graphs with significant time and significant drawdown of the positions of currency pairs.
2) Counter-trend trading systems
Traders are guided by the appearance of market turning points. The help in this program indicators and reversal formations. The potential profit in these systems is lower than in the trend ones. However, work with opening/closing transactions is greatly simplified.
3) Reverse trading systems
Combine elements of trend and counter-trend trading systems. Work in any time intervals with an always open position. Transactions are closed when the trend reverses to the opposite direction, at which point its profit or loss is fixed.
4) Universal trading systems
The most widespread group of trading systems. Positions for entry to the market and for making deals can be opened at any time frame, regardless of the state of the trend. Convenient in that they have fixed indicators take-profit and stop-loss, which greatly simplifies the work with such a system.
However, these are just generalizing schemes for creating your own trading system. Each trader should adapt the system to personal preferences and individual characteristics of temperament. Those who like slow decision making and the opportunity to have time to assess the current situation - work best in the structure of the trend trading system. And for those who love the dynamics and are ready to take lightning-fast decisions in a fast rhythm of changing trading positions, it will certainly be much more convenient to develop their strategy on the basis of a universal trading system.
Adaptation of trade signals
It is important to understand that with absolute similarity of these indicators of the current state of the foreign exchange market and the direction of the trend, these data carry a completely different meaning for the Raiders themselves. What some people were looking forward to, does not bother the others at all. That is, each trader has his own criterion of expectations of market changes.
This is the reason that is important to use for your system those monitoring and market monitoring tools that really help you to profit from the current state of the market, and not just to track it. Therefore, carefully review and select from the total number of numerous indicators only those that will become reliable assistants in your system. The more accurate and informative the trading signal will give the indicator, the higher the chances of entering into a deal with a guaranteed profit.
The benefits of the tools for technical analysis abound now and they, depending on the needs of the trader, almost do not fail when you fine-tune the necessary queries.
Entry and exit from a position
One of the most important conditions for trading in the foreign exchange market is a competently designed entry and exit from the transaction. Beginners naively believe that the most important thing is to enter into a successful transaction in order to get a profit. But, this is a delusion. You can enter the transaction much later than the point of successful entry and, nevertheless, quite successfully close the deal, albeit not in full profit, but with unambiguous profit. As well as on the contrary. You can successfully enter the deal, but miss the time when it should be closed, so as not to get the loss.
In order to avoid such situations, when choosing the rules entering into the trading system, it is necessary to select carefully the analysis tools. A competent choice of indicators will allow you to determine as accurately as possible the right time and entry points to transactions and just the time of their termination. After all, one of the most important rules of the trader is not so much to successfully enter the transaction, how many successfully close it.