How To Trade Using Mechanic Approach? Final Part
If I had to trade with seed capital less than fifteen thousand dollars how it is possible to increase the statistical superiority? My assumption is the following: it is necessary to pick up some classical figures and to specialize on trade with their help. You should possess discipline and patience to wait correct development of these figures, using only the markets approaching for small accounts.
Also you should use rigid management of risk and possess huge persistence to allow profits to grow on good trade. Mini contracts at stock exchange are the suitable alternative of small accounts and are also recommended. Full-size contracts can be used in such markets as gold, a clap, soybeans, soya oil and oats.
The best book on trade by means of figures is Peter Brand’s book “Trade in commodity futures by means of classical figures”. Peter earns by means of this way already over twenty five years. His approach consists in finding out clearly certain figures described by classics by Edward and Magicians in the book “Technical analysis of trends of stock market”, with the prospective movement representing potential there have arrived at least two thousand dollars on the contract and relations of profit to risk at least three to one. There are still some requirements described in its book.
Other successful expert who uses figures for an input is Steve Breeze is the publisher of “the bull review”. It is the excellent review. Steve’s personal approach to trade consists in concentration only on two kinds of figures. Further it describes the method in exclusive interview: “I continue to believe that use of standard figures is very profitable method of trade. I researched what figures work and have tried to reduce all kinds of figures to several. The first, it is “unfortunate scope “which head and shoulders” either threefold top or a bottom can be double top or a bottom or last part of a figure “.
These are figures of reverse type. Other type of figures includes all types of triangles which are consolidations. Usually it is continuation figures, but they can be also the reverse figures. A problem with these figures that at trade on break stop placing on the other hand figures usually give greater risk, than I want, and then many traders proceeding from the sizes of the account presume to themselves. A typical exit from this situation is to trade on break when it has occurred, and stop placing on the distance dependent on your admissible risk.
For those who want to participate in forex trading should start from learning the basics of currency exchange market to make sure you do not have problems with this industry.