Carlos Racines, veteran Trader, explains at the Trading Mastery Summit, how to survive in the Forex market and build a personal financial strategy.
The presentations of the first of the Trading Mastery Summit continue.
The first day is focused entirely on the basic fundamentals of trading platforms. That is why the speakers have focused their talks on advising Forex novices.
Interventions have flowed, and the numbers of people connected exceed 15,000, since interest in the Forex market has grown during the pandemic.
Carlos Racines explains how to build a personal Forex strategy
The key to success, according to Racines, is a clear and well-planned strategy. For as in all areas of life, without a strategy and a disciplined order, success cannot be achieved.
Carlos explains that the trading strategy is a fundamental requirement when taking the first steps in the currency market. And this supports him with a 14-year Forex career, since for him, this is more than a hobby: it is a profession.
And like any profession, it requires practice, experience and dedication to perform everything perfectly, however, there are always difficulties.
For Racines, the basic difficulty of beginning traders, and even experts, is based on the individual psychology of each aspirant, professional and veteran of Forex.
It is a common denominator between expert traders and forex market analysts to mention psychology as a factor affecting trading.
Since, the constant hustle between winning or losing, investing or not taking risks, generates an uncertainty that directly affects operations.
In addition, he mentions that he considers that anyone can trade in Forex.
However, it takes knowledge, practice, and training to understand all the technicality. In addition to this, he considers that studying the market to identify market moments is the most important thing.
How to create a simple personal financial strategy?
There is no exact, or perfect, strategy that can be applied to everyone in general. Well, the world is full of infinite diversity and factors, just like in the currency market.
Racines explains that the main thing is to understand that the strategy must be their own, based even on the way of being the trader or the beginner, thus building a personal financial strategy.
Well, he considers that psychology in the market is individual.
He added that this is so because when operating in the foreign exchange market, it is practically an internal dispute due to the uncertainty of operations.
This is because you can fall and you can go up for risking too much. So the biggest challenge on the market is the psychological challenge.
Another important factor that added as a key element of the financial strategy was the fundamental analysis. This is because not only technical analysis matters, but it is important to be aware of international news.
It is important to keep an economic calendar of the countries, to understand that economic inflections and political tensions have a directly proportional effect on market trends.
Using technical strategies: The key lies in simplicity
Understanding the technicality of the Forex Market depends on practice, and as knowledge is gained, traders add more and more indicators and technical channels to their trading strategies.
However, Racines emphasizes that the key is to find a technical strategy where trends can be seen as clearly and concisely as possible.
In addition, he explains that the charts where the daily averages are seen give better results, since one of the keys is to know the trend and thus understand when to buy or sell.
One of these examples is the Heiken Ashi Trading Strategy. This strategy works with daily averages, making it more feasible, since the trend can be seen more clearly, and it is simple.
“We should not overload the technical channels. Do not believe that the more cumbersome the graph, the better benefits will be obtained. Well, it’s the opposite ”, he explained, since for Carlos, the easier it is to understand the table and the signs, the better results will be obtained.
5 steps to follow to define your own strategy
For Carlos, the steps to follow to make your own strategy are the following:
- Assess skills: understand where in the spectrum of the trader is the individual. And that is identified through the results of operations, because when a constant is achieved, there is a strategy that works. Well, the important thing is that this strategy works in the long term and provides balanced operations in profits and losses.
- Investment psychology: Greed and risk appetite tend to generate negative effects when losing or winning. And that can lead to bankruptcy. But the key to this step is learning from mistakes.
- Risk-benefit: The strategies can be good and give excellent numbers, but they can also give too many losses. A good strategy is one that gives profits between 20% to 30% of monthly profits.
- To establish objectives: How much do I want to earn? What are my aspirations for the month? How much am I willing to lose? Essential questions to understand the Forex market and build the strategy.
- A clear idea of where to locate the indicators: Since in this way, trends can be studied in a better way.
Trading Mastery Summit: July 27 to July 30
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For more information like this, access the Trading Mastery Summit website and request your free ticket.