A trade is a set of transactions concluded during the reporting period by a foreign exchange trader. This indicator allows the market participant to take a break from small successes or failures and see more global results of their activities.
Instructions
Step 1
Analysis of his own work for a certain period allows a trader to avoid psychological stress from single transactions that brought him a loss.
Step 2
A trade is considered to be trading according to a certain system. Within one trade, all transactions are of the same type. An active participant in transactions for the purchase and sale of currency must be able to allocate equal volumes of transactions. The obtained statistical data will help him analyze his actions and adjust his system of work. Only after studying 3-4 conducted trades does it make sense to change your tactics.
Step 3
The size of the trade depends on the tactics of the trader. Most have a 1-day cycle - these are intraday and position traders. They make dozens of trades a day. The main tool of such traders is technical analysis of the market. Price behavior is tracked using technical indicators with charting. At the same time, it is assumed that price changes are cyclical, which means that its behavior is not difficult to predict from fluctuations in the past.
Step 4
Some, however, are playing for the long term. These are the so-called investors. The number of deals for such players is limited to a few per year. Accordingly, their trade can be 1 year. In their work, they are based on fundamental analysis, which requires the study of large amounts of information. This type of work is very difficult, it is done by professionals who have received knowledge in special educational institutions. They try to predict how certain events in the world will affect the foreign exchange market as a whole. And it depends not only on economic factors, but also on natural disasters and catastrophes.
Step 5
There are also intuitive players, for whom the trade does not play a special role. As a rule, these are experienced market participants who just need to look at the structure of price changes in order to draw correct conclusions.
