​Trading Model of Professional Operators

WikiFX Strategies (15 Mar.) - While more and more people are engaging in futures investment, earning a profit seems to be harder and harder. Rather than technical analysis, investment norms and skills are what they indeed lack. Let's explore the trading model of professional operators.

1. Research and judge the market trend

Fundamentals could change the price trend in the mid-and long term, and technical analysis could determine the reasonable position opening price and the profit size, reducing investment mistakes. Thus both the two approaches should be taken into account in futures investment.

2. Strategies and tactics

2.1 Enter the market that shows a significant trend, trade patiently for medium and long term, and get rid of frequent trading.

2.2 Do not trade what you cannot understand and build up your position only when the market moving definitively.

2.3 In the face of consolidation, hold your position until a clear trend appears.

2.4 Stick strictly to your technical analysis, that is, to trade on probability rather than chance. For example, you should long your position once observing a double or triple bottom pattern, which indicates a 70%-80% probability of uptrend. Mistakes though there might be, the failure probability is low in the case.

2.5 Set your stop-loss. Liquidate your position as soon as noticing you're going against the trend.

2.6 A full position brings fast gains but even faster losses.

2.7 Never trade in session occurring price limits so as to avoid systemic risk.

2.8 When the market is in a descending channel, never trade in the hope of a rebound. Don't be penny wise and pound foolish.

Moreover, to achieve success, traders must overcome the pack mentality and fear, stay assertive, and learn from their failures.

Download WikiFX (bit.ly/wikifxIN) to get lessons from experts who have traded forex for over 20 years.