Any workable trading strategy should be implemented as a minimum, the following principles: • trades only in the direction of the trend; • Limit the size of losses; • ensure profitable growth; • Do not forget about risk management.Any, is adopting the trading system, you should test for the presence in it of the above components.

Requirement of trade on trend defines the rules for entry into the market. To succeed in trading you have to open up their positions solely in the direction of current price movements.

Analysis of market processes shows that prices are moving mostly at random, and the proportion of the orderly movement of the trend is very small. This fact is fundamental, basic for those who organize their trade on

In market trading, there is only one path to success - the use of methods that provide a statistical advantage. This advantage comes the ability to shape price trends. In the long run, you can earn only trading with the trend. Ie when prices form an uptrend (bullish), you should only buy, but in a falling trend (bearish) - to sell. This important principle is not new and is widely known, and, nevertheless, very often, traders do not take it into account. In pursuit of maximum profit, they tend to buy at the lowest point and sell to the very top, not waiting until the prices form a new trend. Successful, experienced traders are always waiting for an objective confirmation of change of market trend, and only then open position.

Trading in the direction of the trend is psychologically very difficult, because rationally justified the closing price is quite far away, and in case of an incorrect forecast, a trader can bring substantial losses. This fully explains what successful traders are very few. Not everyone is able to trade under the pressure of such a heavy psychological burden.

Any trend exists and can be built only in certain time frame. This time interval may be a month, week, year or hour. Consequently, the decision of choosing the time interval should be an essential part of your trading plan. Psychologically easier to choose a shorter interval, but the best results are achieved yet on long time intervals. Long-term deals tend to yield more profits.

To ensure a good chance of success. You have to work on the trends at least 4 weeks. It is in the direction of the trend, lasting no less than that period, you must open up their positions. A good trading system that takes into account this principle is to buy when the closing price is higher than it was 10 days earlier, and sales, when the closing price falls below what it was 10 days earlier.

If you trade long enough for trends, you follow the market rather than trying to guess his impending move, and it is - a very positive moment in the trade. Traders are often losers all their time and effort spent on fruitless search for the best system of forecasting the market, and as a result have only losses. If you have enough strength to develop the discipline and trade only in the direction of medium-and long-term trends, then almost certainly you will eventually be able to make their trade consistently profitable.