It doesn’t matter with what Singapore brokers or trading platforms you are trading. If you don’t have your own trading strategy, it will be very hard for you to make a constant profit on Forex market. Before you start trading with large amounts of your own funds, we recommend you to take your time and develop your own trading strategy using demo or mini real Forex account.
Almost every trading system is based on two main parts: the system of entry the market and exit from the market. In order to guarantee yourself successful trading the first thing you need to learn is when it is good to open the trading position and when to close it. This knowledge can be gained with the help of both technical and fundamental analysis and of course practice. In general your trading system must give you signals for certain actions that you have to follow. The purpose of the system is to find the market situation, when opening a position shows the biggest potential for income with smallest risks.
Risk is determined by the levels of support or resistance. The stop-loss order must be set no closer than 20-30 points from these levels on the condition that you don’t risk more than 5% of the total funds in this position. The take profit order must be set on the next level of support or resistance in the direction of price movement. As the price moves your direction, you move the stop loss further from the losing area to the break-even zone. The most important factor using this strategy is to find the right entry point.
The purpose of the exit system is first of all the protection of your main capital and of course gaining profits. The successful trading system must be targeted for minimizing the risk of losses but not seeking for huge profits. If you learn how to minimize your risks while trading Forex, you will definitely make profits while trading Forex. Those trading systems that are based on the analysis of Elliott Waves, provide with an accurate way to find the optimal entry and exit points with the lowest risk or trading losses.