Another very important factor to consider when it comes to developing your own trading plan is which time frame to use. This depends on how comfortable you are with volatility and how long you plan to hold on to your trades. Traders who thrive in fast-paced price action and are able to think clearly in … Continue reading Which time frame should you trade?
Regardless which type of trading style you decide on, there’s no denying that risk management rules must be included in every trade plan. This could determine whether your account can survive a series of losses and still manage to end up profitable in the long run. As with trading styles and time frames, there are … Continue reading Determining your risk profile
Mechanical forex trading involves having a set of technical indicators generating entry and exit signals based on pre-determined rules. This kind of trading approach is used to automate trade execution and can often be implemented right on the trading platform as a forex expert advisor or algorithm. This kind of trading style appeals to many, … Continue reading What is mechanical forex trading?
Algorithmic forex trading has been on the rise in the past few years, as both retail and institutional traders have welcomed the convenience and profitability of such trading systems. This kind of trading approach, which is also a form of mechanical forex trading, makes use of computer code and mostly focuses on short-term price action. … Continue reading Is algorithmic forex trading for you?
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?