Management in Forex trading is like semiliar with the banks of the river that protect and bring the water from upstream to downstream. Just Like the management in general he was caring for, raising, escorting the business and so on.the Present of management in Forex Trading at very-very important.
People who are in forex trading business then do not use the management and not applicant it into their trading business is same like people who hold cash money and go to the mall and then spend money for something that is entirely unnecessary.
no matter how much money you have,in any kind of business, if it doesn’t have good management then it will all be evaporate and useless. Especially in world of forex trading, that can eliminate All your money in the blink of an eye.
Management in forex trading world is different among people I will write a few that is only known and popular.
A. MANAGEMENT OF TIME.
I am is a full time trader. But I limit myself to be in front of chart a maximum of 7 hours per day (based on the office hours in general). So I have commitment and count every time I sit in front of the Chart when is reached my limit I stop.
Why is you limit to sit infront of the chart/computer ? my answer is The Market is open 24 hours in 5 days. if we addict and sit infront of the chart then there is a negative impact on some other non-trade activities. We have to understand that a full time trader was not the person who merely being in front of the chart but a full-time trader is one who is able to manage his time and was able to feed themselves and their families from the trading and he doesn’t have a formal bond with anyone.
How can I manage the time? To be more detailed and not confused, I will wrote it in line with my experience. I chose a specific time to be in front of the chart. Usually I am in front of the chart when in the zone of the open market, such as Asia, Europe and America. typically between 7 and 9 in the morning after breakfast I was in front of the chart.
What I do every morning is mapping (drawing market movement/making Prediction) . I will try to read market movements in the day. For example: I will make TWO pattern of modification to the market. FIRST: the modification of down trend. , I will analyze with my knowledge of my systems that I understand very well. If the market trending down then (example) could so she climbed out to so many, then down to so many pips and corrections. and go down again and will stop at my point.
SECOND: the modification of uptrend. If market will go up then maybe he went up, then stop here, then up again and so on ..
Why should I make two modification of prediction ? is To facilitate me and to adapt market conditions. In two modification that I made ,usually I make percentage / percentage possibility. For example: after making two such modification I will be grade 70% rise. And 30% down. I usually do this analysis more than 2 hours. And I have not yet decide to make a transaction at this stage. When finished it I went on the other daily routines.
Later , after one or two hours I will back again looking at the chart, to prove the results of my analysis. Is it true that FIRST of analyses or the true is the SECOND of my Analysis. . Or both is wrong . If true as that I predict I will make new step on the next stage is to look for opportunities for the transactions ,but if I am wrong I will repeat my analysis of my prediction to adapt the movement of the market.
If there are good opportunities to make a transaction then I will deal, but if I estimate that there is a new opportunity at 4 or 5 oclock ,usually I just put my pending orders at a certain point. After placing the order I put the limits the profit and the Stop losses of my trades and then I stay away from my chart yes I stay away, so we really don’t have to wait for the pending order is hits because usually it is time heart will beat begins. Itching hands raised. When we see the profit comes,we wants to close it faster,and when losess that we want to re-entry etc. It’s busniess sir. Mapping your busniess.
Typically 7-9 hours later I see the chart again what happens next. And I repeated again the next day. And continue to be so. That’s hours of work I have to pay as a forex trader. That is so delicious to be forex trader and that the importance of time management as a forex reader.
The last I quote from my trading Teacher (I hope God give him a lot of blessing): “In the world of Forex Trading , there is no one can change you unless you change yourself “.
sometime we can learn from the world analysis like to professional trader in paxforex to compare our analysis. so our analysis will improve with more knowledge from the pro.