Types of policies
Strategies are divided by time. Longer strategies are less profitable but less risky. They require less psychological stress and a greater ratio of Deposit / Margin. The converse is true for short-term strategies.
Long-term strategies - such a strategy where a trader holds a position open for several days to a month or more. This is the least risky strategy that does not require making instant decisions. Yes, and psychological stress is low. On the other hand, quite a large deposit of at least 5 to 10 times higher than Margin (the amount required to open and maintain a position).
So, if Margin equal to $ 1,000 for the work under this strategy must be from 10000. It is necessary to withstand the sudden speculative fluctuations, reaching an average of 500 - 1000 points. A second drawback of this class of strategies that must be paid for the transfer position. Such a strategy using strategic investors and speculators semi. It is most effective in the emerging trend and the least profitable at the side or sluggish trends. Requires mandatory safety net, and related work on the futures exchange options market.
Medium-term strategy is working within time limits ranging from one day to one week. It satisfies all of the above. It is perfect for beginners who can not or do not want to wait a long time. This is potentially more profitable and somewhat risky strategy, but at a ratio of Deposit / Margin of 5-10, it can be virtually risk-free.
This strategy is mainly used as semi-professional speculators. This strategy can take advantage of all the strategies work, on the one hand it can be quite long-term, on the other - a short-term.
Short-term strategy - from one hour to one day. Potentially highly profitable strategy for experienced traders. It is used by professional players who are already fairly well known and the "" market. The positive point is that by using this strategy to work, you are not putting yourself at risk of unexpected price changes and fellowship at a time when you were on the market. Negative - high indirect costs (commissions, spreads, communication services, etc.) greater risk of adverse short-term price fluctuations, requires constant concentration, and stress control during the day.
Very short strategy - the most attractive for beginners and rapidly leads to their complete collapse. Tempted by short-term fluctuations of a few points, the trader begins to "catch points" on 1-5. Several times it can be successful, he earns 20-40 points.Then there is a movement against the position of the trader and he quickly makes a loss. Since this work requires a very quick decision in a very large psychological stress, which is available only to very experienced trader, the rookie does nothing but fascination is watching how quickly it is reduced deposit.
To begin with recommended use of the medium-term strategy to gradually taking advantage of the first and the second-last strategy in sluggish or sideways. It should be noted that "it is better to do nothing than to do that - then." I mean that you can not enter into transactions only - a simple desire for action, often provoked by the long inaction. For each transaction must be a reason - a fundamental or technical.
Strategies are divided by time. Longer strategies are less profitable but less risky. They require less psychological stress and a greater ratio of Deposit / Margin. The converse is true for short-term strategies.
Long-term strategies - such a strategy where a trader holds a position open for several days to a month or more. This is the least risky strategy that does not require making instant decisions. Yes, and psychological stress is low. On the other hand, quite a large deposit of at least 5 to 10 times higher than Margin (the amount required to open and maintain a position).
So, if Margin equal to $ 1,000 for the work under this strategy must be from 10000. It is necessary to withstand the sudden speculative fluctuations, reaching an average of 500 - 1000 points. A second drawback of this class of strategies that must be paid for the transfer position. Such a strategy using strategic investors and speculators semi. It is most effective in the emerging trend and the least profitable at the side or sluggish trends. Requires mandatory safety net, and related work on the futures exchange options market.
Medium-term strategy is working within time limits ranging from one day to one week. It satisfies all of the above. It is perfect for beginners who can not or do not want to wait a long time. This is potentially more profitable and somewhat risky strategy, but at a ratio of Deposit / Margin of 5-10, it can be virtually risk-free.
This strategy is mainly used as semi-professional speculators. This strategy can take advantage of all the strategies work, on the one hand it can be quite long-term, on the other - a short-term.
Short-term strategy - from one hour to one day. Potentially highly profitable strategy for experienced traders. It is used by professional players who are already fairly well known and the "" market. The positive point is that by using this strategy to work, you are not putting yourself at risk of unexpected price changes and fellowship at a time when you were on the market. Negative - high indirect costs (commissions, spreads, communication services, etc.) greater risk of adverse short-term price fluctuations, requires constant concentration, and stress control during the day.
Very short strategy - the most attractive for beginners and rapidly leads to their complete collapse. Tempted by short-term fluctuations of a few points, the trader begins to "catch points" on 1-5. Several times it can be successful, he earns 20-40 points.Then there is a movement against the position of the trader and he quickly makes a loss. Since this work requires a very quick decision in a very large psychological stress, which is available only to very experienced trader, the rookie does nothing but fascination is watching how quickly it is reduced deposit.
To begin with recommended use of the medium-term strategy to gradually taking advantage of the first and the second-last strategy in sluggish or sideways. It should be noted that "it is better to do nothing than to do that - then." I mean that you can not enter into transactions only - a simple desire for action, often provoked by the long inaction. For each transaction must be a reason - a fundamental or technical.
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