Book “Just do it! 5 commandments of profitable trading”
From the book you will learn:
- How to protect yourself from an unscrupulous broker
- The concept of “forex in theory and forex practice”, trading prospects
- How do I trade? The main principle of earning
- Scripts, indicators and advisors to protect the deposit from being drained
- How to make money with trading robots
Excerpt from the book…
How do I trade? The main principle of earning
In this section, I will briefly try to tell you how and on what principles you need to trade in order to stay in the black.
Initially, let’s look at what methods of trading exist.
Methods of trading on financial markets:
- Manual trading
- Automatic trading
- Semi-automatic trading
Tips for manual trading
The first thing you should learn is that it is quite difficult to trade hands, because even when trading the system, you will often make subjective mistakes. Manual trading requires experience and skill.
Manual trading is based on 3 fundamental stones:
- Trading system
- Money management
The first fundamental “stone” of successful trading is the presence of a trading system.
A trading system is your clear plan for trading actions, consisting of answers to the questions:
- under what situation will you buy / sell an asset?
- what part of the capital will you risk?
- when will you take profit / loss?
At the initial stage, do not bother too much with the trading system, select one for yourself and try to trade on it. Do not be discouraged if it is not immediately profitable, judge the results only after 100 trades, exclusively using this system.
One of the great traders said: “The best trading system is the one that fits on a matchbox.”
Example of trading system points:
- Entering a buy trade, the price falls by 60% of the average price of the previous day.
- Entering a sell trade, the price increases by 60% of the average price of the previous day.
- The risk in the transaction is 1% of the capital.
Closing a position
- Closing when a profit of 5%, a loss of 1%
This is an example of the simplest system. With the correct selection of additional parameters, such as the size of the stop loss / take profit and the selection of the desired financial asset, it has a right to life.
One of the proven tactics for manual trading is to close losing trades and keep winning ones. In other words, keep profitable positions as much as possible. This approach should only be used with trending assets.