Methodology and Consistent Application in Forex Trading
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Pablo Soria de Lachica discusses the importance of selecting and consistently applying a methodology in forex trading. Traders should determine how they will execute trades and what information they will use to make decisions about entering and exiting trades. While some traders prefer examining economic fundamentals and charts, others rely solely on technical analysis of charts. The methodology should align with a trader's goals and be consistent yet adaptive to market fluctuations.
Methodology and Consistent Application in Forex Trading
- 1. Methodology and Consistent Application in Forex Trading By Pablo Soria de Lachica
- 2. Introduction • An experienced business leader with investment expertise, Pablo Soria de Lachica currently serves as the director of business development at Bforex. In his role with the currency trading firm, Pablo Soria de Lachica advances the company’s various trading platforms, which offer a wide range of features to help users execute their trading strategies on the foreign exchange (forex) market. It is important for forex traders to select a methodology and consistently apply that approach to their trading activities. Traders should broadly determine how they will perform trades and then identify the information they will use to make educated decisions about entering or withdrawing a trade.
- 3. Forex Trading • While analyzing a potential trade, some traders prefer to examine the underlying fundamentals of the economy or company and then consult a chart to decide on the most appropriate time to trade. Other forex traders may prefer using technical analysis, a process that involves only referencing charts for information on trade timing. The distinct approaches should be aligned with a trader’s goals, as chart patterns can reveal short-term trading opportunities while fundamentals determine the long- term trend. Overall, a trader’s methodology should be consistent and adaptive so that his or her system reflects the fluctuations of a market.