Determine the trading instrument (s) on which you plan to trade. Various trading tools has its own characteristics and terms of trade. Not all strategies are universal for all instruments: what works on the currency pair EUR / USD, may not work when the gold trade, and vice versa. In addition, brokers trading conditions differ for different types of instruments (spread level of leverage, commission, etc.) that must also be taken into account.
Set the rules for risk management. It is necessary to calculate for themselves the possible correlation of profit and loss risks. (https://freshforex.com/partner/program/) Margin trading allows, how to get a bigger profit with a small deposit, and increases the likelihood of obtaining significant losses. Thus, the need to efficiently use available resources by minimizing risks. Terms of brokerage firms usually offer a minimum amount of input in the market of 0.01 lots that are optimally suited for beginners with a small starting deposit. More about risk management you can read in the article, as well as get acquainted with the relevant literature, available for download on our website.
Set the distance placing pending orders, including the ratio of the distance of Stop Loss and Take Profit, if it is assumed your trading strategy. You must clearly understand how much you are willing to lose in order to earn a certain amount. For example, at a ratio of 1: 3, if Stop Loss installed at a distance of 20 points from the input level market, Take Profit is set to not less than 60 points on the input level (https://freshforex.com/traders/trading/swap-free/).
IMPORTANT! Never carry the Stop Loss level further from the entrance to the market, if the active position shows a negative result, in the hope of a trend reversal. Such manipulations lead to additional losses and are in flagrant violation of self-discipline. Remember that trading is not without losses! To master their emotions trader, read the literature on the psychology of trading.
Before you open any deal, you need to be clear under what conditions you close the position. This item also comes into contact with risk management as well as the obligation to establish the ratio of potential profit and loss risks. It is necessary to take in his trading plan signals that will mark the closing position with a profit or a loss. Trader who are in the open position, possession of different emotions, which may adversely affect the result of the transaction and account balance as a whole.