5 Mandatory Rules for Trend Forex Traders
Trend forex trader? What is that ? like ever heard of it? You have forgotten the types of forex traders. Trend traders are a term for investors or traders who follow trends and once open positions rather than opening positions many times in a short period of time. Trend traders tend to open and then close positions that are fairly long, such as monthly, annual. Remember now? in this paper we will not discuss about traders, but about rules that must be done by traders with long term or long term. Long-term trends can be very beneficial for smart forex traders who can correctly identify trends accurately and then properly manage their position-and their emotions when the forex trading position is open.
BELIEVE TO WHAT YOU SEE, NOT THAT YOU THINK.
We certainly will not be able to analyze market movements without reports of economic / fundamental data. Therefore we are obliged to continue to always update the report for the fundamental news report when we have opened a position in the market whether it’s buy / sell. However, considering that currently, on the internet, there is a lot of information about fundamental analysis. And that makes us confused, “which data is accurate and gives a logical explanation of the current movement”. Some suggest to open long positions, there are also those who suggest to hold short positions. Which is true……
We take the example now, as you can see in the example image below, the current chart pattern pattern shows clearly the market is uptrend. Obviously, than you read the analysis reviews from experts on the internet, why don’t you really see what is happening on the chart now.
Forexsignal30 said: Read and see data on what happened in the market, not focus on news predictions.
Don’t overestimate the formula: the market is always concerned / market correlation
Don’t Overemphasize Market Correlations
As we know, the US dollar (USD) always moves in tandem with the stock market. However, there are times later, when the USD trend assets rise sharply, but the US stock market weakens instead. Sometimes it goes hand in hand, it can also be opposite.
Don’t try to do market analysis based on movements that correlate one pair with another pair according to yesterday’s data. That is, if for the past 4 days in a row the EUR / JPY pair and USD / JPY have increased with the same movement. Never assume that today the two pairs will also have the same correlation movement. DO NOT. Check the calendar news whether there will be news from the US or the European zone or not. Because it greatly affects the correlation of the movements of the two pairs.
Start for SET and immediately forget
Learn to Set it and Forget it
There is no sure thing about every time you open a position. Yes, nothing. When you have done an order and click … your position is already entered into the market, inevitably you must have received what happened after that. Actually, many forex traders when they press the mouse button and enter the market. There are still some questions in the contents of his head. Whether it’s vacillating, trying to analyze again, or other stupid things. Remember, when you press the button, just accept what will happen, whether it’s loss or profit. We all try to think as wisely as possible to other forex traders who panic when they open a position, but honestly, we are also the same as they are like stupid donkeys who have eaten fruit but each is confused whether the fruit is poisonous or not.
One key is definitely you really measure and analyze carefully before entering the market. Either it calculates the amount of loss if it happens later, or what pip is a logical advantage that we can get. Of course, don’t forget money-management. Because that is the key to the success of your ACC account. The most difficult thing when you forex trade is when you have opened a position, you are still anxious and always looking for analyzes on the internet for justification for the reckless things you have done before.
Preparation – measuring the amount of loss we will get / measure the pip profit logically (not too much / little) – money management lot – close chart – and forget it.
That is one of the keys to success for investors.
Buy when going up, selling when going down
Buy dips in Uptrends and Sell rallies in downtrends
This is the most common rule in forex trading and the first thing we learn at the beginning of the material. No matter how strong the trend is, there will always be corrections to make room for observant traders to ride the trend. Often corrections move to follow the news as opposed to the current big pattern / trend. Remember the trending principle. If you are a smart trader, you understand what I mean.
Never change the time frame
Change time frame
Of course the last rule is very general and fundamental that must be obeyed by forex traders to get the consistency of profits. It is clear that only traders are stupid if in their activities they always change the time of the frame. It is not possible if you want to measure how smart the 5th grade students are by testing using subject matter from high school students. Of course it is stupid like that if done by a teacher who wants to be professional. Of course, if we want to become professional forex traders, we will not do the same thing as the teacher. When you analyze and enter the market using time frame D 1. Then never once in a while to look at smaller time frames like 1H, 30M, 15M and smaller ones. Use 1W and 1 Montly time frames to see the big trend.
Well, those are the five basic things that trend forex traders must obey. Just as we know, if we want to succeed, discipline. That is the general thing taught by our instructors, so why don’t we apply discipline now in our forex trading activities ??