On the other end of the spectrum from mechanical forex systems is discretionary trading, which mostly involves trading based on fundamental biases or market sentiment. This can comprise trading around news releases or using monetary policy expectations without much reliance on technical indicators. Proponents of purely discretionary forex trading believe that price changes are determined … Continue reading What is discretionary forex trading?
Now that the different trading approaches have been discussed, it’s time to delve into the details of a complete and solid trade plan. After all, it’s not enough to know when to enter and exit trades, but it is also crucial to lay down clear rules that must be followed. Of course these rules are … Continue reading Components of a complete trade plan
Now that the importance of having a complete trade plan has been discussed, along with the necessary components, it’s time to take a look at the other factors to consider when drafting your strategy. First is your level of experience in forex trading. When you are just starting out and learning the basics, it is … Continue reading Factors to consider when constructing a trade plan
Mechanical forex trading systems have been growing in number and popularity, mostly because of the ease and convenience it offers. Before you can come up with a profitable one though, you need to follow certain steps in constructing a proper mechanical system. First and foremost, you should identify if you would like a trend-following or … Continue reading Steps in making a mechanical forex system
After coming up with a trade plan that works for you and one that has held up in back testing and forward testing, you’d still need to work on the discipline to follow your trade rules. This is much easier said than done and constantly requires an assessment of trading psychology. Sticking to your plan … Continue reading Developing the discipline to stick to your plan
