As Benjain Franklin has said about the importance of plan in every aspect of life “If you fail to plan, you plan to fail”. Fuad Ahmed, a currency trading expert does not differ in his opinion from Benjamin Franklin and uses the words to teach his fellow traders the tip for life. He is of the belief that no matter how experienced a trader is, a trading plan can never be subtracted from one’s business. Mr. Ahmed stresses on the inevitability of a strategy in the trade and recommends traders to draw it before they take up the path of full-time trading. Fuad Ahmed, being a currency trading expert has for his readers chalked down a list of aspects that collect to form a successful trading plan. The key aspects according to Mr. Ahmed are prediction, volatility, timing and risk. He asserts that each of the factors works in accordance with the other to create a full-fledged technique to make trading a profitable activity.
Fuad Ahmed is of the view that it’s a trading plan that determines your market exposure. It doesn’t seem essential in the beginning as it is in reality. A trader needs to design a strategy right before he decides to make a jump in the forex market. A strategy minimizes the complexity of a trade for him and enables him to understand his own approach along with factors that can give him a high place in the forex market.
Fuad Ahmed has a few quick strategies compiled in this article to facilitate his reader with the best tips.
Evaluate your Performance. Know the number of trades you can handle.
Before a trader steps in the field of trading, he is supposed to assess his own approach and understand his attitude.
The easy way that Fuad Ahmed suggests his fellows to know their trading behavior is by keeping tracking of the number of trades one does. There are often a few number of trades in the beginning of a traders career that determine for him the time he is going to sustain in the market.
While sharing his own experience Mr. Ahmed quotes that he took the first 10 trades of his careers as a benchmark for the evaluation of his trading approach. He believed that 10 was a decent sample number of trades for him to judge his future in the market. The 10 swing trades according to Fuad Ahmed were made in the time of 3-4 months. He suggests that a trader should keep the number of trades and the time frame both in their mind when comparing results of one’s evaluation of oneself.
Fix a time of the day to trade.
The best technique to win in the game of trading as per Mr. Ahmed is setting for yourself a trading time. Mr. Ahmed gives his own example to tell how he has a fixed time chosen in a day for trade. He tells that he only trades 9-2 in one day and remains as a keen observer the whole day.
Master one strategy.
Just like a trader is recommended to choose a time frame for his trade in a day and stick to it, he is required to strictly follow a trading strategy that he has made and religiously follow it. Some traders take the pressure of forex business too much and listen and try to follow every strategy that they are told about. While on the other hand Fuad Ahmed, from the beginning has emphasized on the value of choosing one plan for oneself and mastering it. A trader should opt for a plan that suits him best and practice it to perfection. Mr. Ahmed says that instead of going with multiple strategies and remaining confused, it’s always better to choose one and stick to it.
Put a stop loss.
Stop losses are not a negative thing; stop losses are what keep you in business over the long haul
Stop losses are an extremely positive thing in a trade if you’re trading long-term. As Fuad Ahmed shares his own experience and tells that he had set his own stop limit at anything above 4%. The 4% is the threshold level he considers as his desired profit. Anything above the 4% can make up the profit he wants from his trade. Setting a stop limit for yourself also determine your level of competence in the trade, it leaves you consistent and also polishes the skills a trader has. If one consistently targets the same stop limit, chances are he can get very positive results in the profit returns of his trade.
Money Management per trade.
The key concept of defining the rules for trade is to guide the trader with the best he can do. Fuad Ahmed believes money management as the main determiner of a trading capacity of a trader. He suggests that a trader always has a fine idea of how much he can afford to invest in a single trade or how much he can risk lose. Mr. Ahmed also recommends his readers to keep a check on all the money he is willing to invest in a trade, he also asks the trader to monitor market carefully before finally stepping up to make a deal. He should know and forecast, looking at the trends of the market, where it can possibly go.
If a trader sees the market not going above the height of a certain limit, he should withdraw his money before he sees it further going down. For instance, if a trader observes the market to be only going down then he shouldn’t risk more than the 10% of his trade because, in circumstances like these, the possibility of profit is also somewhere between 5-10%.
The best time to take a break.
The true essence of trade is to generate most profit out of it, but also believe that trading continuously doesn’t get you it rather trading with controlled emotions do.
Fuad Ahmed tells that it is handling the stress situation in a positive way that influences your trading results. So, it’s essential a trader makes it a routine to take regular breaks after some time to make trading a healthy activity. Fuad Ahmed is of the opinion that it’s only a healthy mind that can cultivate good trades and results, therefore a break should be a compulsory option.
Fuad Ahmed, being a currency trading expert believes in spreading the knowledge he has gained throughout his years of service in the forex industry. His advice and tips on the planning of forex trading strategy can take a trader go an extra mile in winning the profit returns.