​A Collection of Trading Strategies & Tactics

WikiFX Strategies (9 Mar.) - Trading is actually a competition of investment philosophies, in which ideas, strategies, and techniques are only a secondary consideration. Similar to war, trading involves several tactics. Here are some of them that traders must learn.

1. Look before you leap

To trade does not mean you must make a profit. What you need to do is operating according to your own strategy, that is, only operating the right transaction regardless of the profits or losses. Making clear why you win or fail is more important. Traders make advancement by evolving from being subjective emotional to objective systematic, and finally to obtaining philosophical thinking.

2. Enter with defense

Establishing your defensive mindset when entering the market. Before starting real trade, consider what if you are wrong, whether the risk is controllable, and whether the loss is affordable. Only when you get aware that risk control comes before investment decisions and when you keep learning from the trial-and-error process can you see resistance reduced to the least extent.

3. Trade with trends

Its meaningless to bet on trends without considering the time scale. The stronger the trend is, the greater its stability and continuity are. On the contrary, the weaker the trend is, the more chaotic and inscrutable it presents! Trading with trends works only when you have established a macro view based on the time scale.

4. Strike where the enemy is weakest

The market exists to tempt most people, and the nature of trading determines that it inevitably has an anti-human side. Thus traders must be equipped with efficient reverse thinking!

5. Respect the law

While all things have their own laws, good fighters are good at taking advantage of the situation. Always stay in awe of the market!

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