toptrade profilja

how to create a trading strategy
To become a good trader you need to acquire over time a good approach to the markets and a good trading strategy that has advantages and can help you make a profit on your chosen market and identify entry and exit points for your trades. A trading strategy is the driving force behind your trading plan. It will help you identify your objectives and make consistent decisions that are not based on emotion.

Trading styles

There are different ways of trading. The four most common styles are:

Day trading involves opening and closing a small number of trades within the same day in order to take advantage of even the smallest price movements. Positions are often opened and held for a few hours and closed within the day.
Scalping is a very short-term trading method that involves executing a large number of trades per day. The average duration of each trade can vary from a few seconds to several minutes.
Swing trading involves maintaining positions for several days in an attempt to take advantage of market changes in the short to medium term, i.e. from two days to a few weeks. This is the style that I prefer and that I use most. Price action uses daily and weekly time frames as analysis charts.
The trading of position previews the maintenance of the positions for weeks, months or even years with the expectation that they become profitable in the long term. A "cassettista" is a person who maintains positions in this manner.
What these different trading styles have in common is that they all have a single objective: to profit from changes in asset prices, and they differ only in the frequency and duration of trading. Each choice is individual and depends on your needs, personality and the amount of time you want to devote to trading. Once you have decided on your trading style, you can move on to drawing up your trading plan.

This should include your motivations, goals and the amount of capital you are willing to invest.

Market analysis

The key to a trading strategy is market analysis, which uses available information to predict market trends and create a methodology for entry and exit levels.

Market analysis falls into two categories:

Technical analysis is based on the repetitiveness of past events, i.e. the premise that what happened in the past can be used to predict future price movements. Traders can analyse charts and use price indicators to build their trading strategy based on trend and historical price patterns. The price action I use is a form of technical analysis that relies solely on price dynamics to trade.
Fundamental analysis is based on the principle that every asset has a real value or fair value. Traders use macro data, GDP or employment statistics, along with headline political news to identify new opportunities or under or overvalued assets, to take advantage of future market corrections. It is worth remembering that financial markets can be extremely volatile, so it is impossible to fully predict its movements, but a good trading strategy can prepare you for anything. Risk management In trading, the term 'risk' refers to the fact that your decisions do not always lead to the expected result and can always create a loss.
Losing is indeed an inevitable part of trading, which all traders must be prepared for. A good risk management strategy allows you to safeguard your profits and reduce your losses. wholesale clearance

In my approach to trading, I prefer to call losses the 'cost of doing business' and try to take as entrepreneurial an approach to trading as possible. A successful trader, in my experience, should always approach trading in this way. In the long term you have to try to be profitable and this, in principle, is equivalent to having profits higher than costs (see stop loss) so a good ratio between risk and return and not necessarily a number of profitable trades higher than the number of cost positions.